Eating Out Overtakes Supermarket Spend

 

Cultural changes in food consumption, with people eating out more regularly and enjoying a wider range of cuisine, continue to have an impact on the UK economy according the the latest Government statistics.

Household spending on fresh and processed food and drink products was £85.8 billion in 2004, up 53.4 per cent between 1992 and 2004. Over the same period, spending on food and drink products consumed outside the home grew by 102.2 per cent, to £87.5 billion in 2004.

Finance and business services continue to form the largest single sector of the UK economy since 1991, and in 2004 accounted for 33.0 per cent of the total, which was more than double the size of the manufacturing sector.

The contribution to the economy of each individual producer, industry or sector is measured using Gross Value Added (GVA) at current basic prices, and in 2004, GVA for the whole economy was £1,044.2 billion, passing £1,000 billion for the first time.

In all years from 1992 to 2004, the finance and business services sector provided the largest contribution to GVA. In 2004, this industry group accounted for £344.5 billion out of £1,044.2 billion, and grew by 8.1 per cent between 2003 and 2004, a faster rate than that of growth in total GVA of 5.9 per cent.

The manufacturing industries contributed more than 20.0 per cent of GVA until 1998, when it stood at 20.0 per cent, but has fallen every year since then, to 14.1 per cent in 2004. The manufacturing sector contributed £147.5 billion in 2004, 1.8 per cent up on 2003.

The contribution of the construction industry increased in each year from 1999, from 5.3 per in 1999 to 6.2 per cent in 2004. The creative sector's contribution in 2004 was 8.8 per cent of the total. In 2004, distribution and hotels contributed £160.6 billion, growing by 6.3 per cent over 2003.

The agricultural industry's contribution fell below 1 per cent in 2001 for the first time, compared with 1.9 per cent in 1995. Since foot and mouth disease in 2001, the contribution of these industries has recovered but still remains below 1.0 per cent.

In 2004, the contribution of Information and Communication Technologies (ICT) to whole economy GVA at current basic prices accounted for £66.4 billion, 6.4 per cent of the total. Also the trade deficit (exports less imports) in ICT products was £11.2 billion, the largest to date.

Household spending on all food sector products was £173.3 billion in 2004, up 74.6 per cent between 1992 and 2004. By comparison, spending on catering products consumed outside the home grew by 102.2 per cent.

The contribution of the oil and gas sector to whole economy GVA at current basic prices in 2004 was £21.9 billion, having peaked in 2000 at £24.7 billion.

The Bank of England and HM Treasury are interested in separating out market sector activity from the total UK economy to assess the business cycle, monitor the output gap, and compare productivity between UK sectors and with other countries.

In 2004, market sector GVA contributed £925.7 billion out of £1,044.2 billion (88.7 per cent of the total), and grew by 6.0 per cent compared with 2003. The non-market sector contributed £168.7 billion (up by 7.2 per cent on 2003).

In 2004 each adult spent £35 a week on restaurant meals compared to £34 on supermarket food. £1.68 bn spent per week on eating out and £1.65bn on supermarket food putting eating out above supermarket spend for the first time.

 

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