In recent statistics reported by Lloyds Bank it was revealed that the tourism and recreation sector has seen a relaxation in cost inflation and price pressures over the last month following a greater demand for travel and several decreases in inflation.
According to the UK Sector Tracker, the UK economy has seen a great period of growth over the past month, spanning across many different sectors throughout the country. The tourism and travel sector has, in tandem with a greater demand for travel, seen more manageable levels of cost inflation and prices. This has been in part credited to the great demand for travel that we have seen over the previous few months despite the cost-of-living crisis.
Tourism and travel wasn’t the only sector to report an increase in their output over the course of February 2023. Compared to the remainder of the past 10 months, February has been reported by several different sectors as cost inflation begins to fall.
14 different sectors were monitored in this study, and according to the results, 11 of those sectors saw a great expansion in their outputs in February alone. The same data from January shows that this number has increased from a much smaller 6. Over the past year, from April 2022, this is the greatest improvement that the UK sectors have seen, with price pressures beginning to make a steady recovery.
Of these 14 sectors, 10 of them have reported seeing an increase in order volumes in February, again suggesting that the great demand for travel has been a significant contributor to the travel and tourism sector over the past few months. It was recommended that ensuring the increase in consumer confidence could be a great driver for the rise in demand during this time of lower cost inflation.
According to the results, the pace of cost inflation for individual businesses has slowed throughout February, with fewer of these businesses raising prices in order to meet the rise in price pressure. 12 out of the 14 sectors monitored reported a slowed pace of cost inflation compared to January.
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