Consumers in Great Britain are spending more on life’s luxuries as the economy begins to recover.

According to the monthly Visa Spending Index, household spending in the UK rose just 1.1 per cent in the year to March – and by 1.3 per cent month on month.

But Britons splashed out 7.1 per cent more in bars, restaurants and hotels year on year.

The ambiguous “recreation and culture” category, which includes theatre and travel – rose two per cent – by no means as much as dining out, but certainly well ahead of the overall figure.

The losers were apparel retailers – spending on clothing and shoes was down by 4.8 per cent which does not necessarily mean people are buying fewer clothes; more likely, they’re saving by shopping in fast fashion stores rather than higher end brands. A dramatic fall in tourism from Russia may have had some impact on sales of higher priced goods.

Spending on food and beverage (including groceries) rose just 0.2 per cent, but this was likely influenced by unprecedented levels of competition amongst supermarket chains which has resulted in falling prices.

Economists predict that with few people unemployed and weak inflation, real wages have increased which will lead to a continuation in positive spending data in the months ahead.

The British economy is on track to expand by about 0.7 per cent in the first quarter of 2105.