US Out-of-Home Spending at Bars and Pubs Posts First Growth in Four Months

Consumer Spending Trends Show Signs of Recovery

After four consecutive months of contraction, consumer spending trends at bars, pubs, and restaurants showed signs of recovery in April, according to a recent analysis of consumer spending trends by Moneycontrol.

UPI Spending at Bars Reverses Decline

UPI spending at bars, taverns, nightclubs, and cocktail lounges rose 3 percent from a year earlier in April, reversing declines of 1.7 percent in March, 2.4 percent in February, and 1 percent in January. This marks a significant turnaround from the segment's sharp slowdown from growth rates of more than 20 percent in April and May 2024 to near stagnation by late 2025.

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Discretionary Consumption Sees Recovery

The recovery in discretionary consumption was also visible across restaurants and fast-food outlets. Spending at eating places and restaurants increased 17 percent year-on-year in April, while fast-food chains recorded a much stronger 34 percent rise. Additionally, bakeries expanded nearly 34 percent, while candy and confectionery shops posted growth of 45 percent.

Alcohol Retail Continues to Outperform

Alcohol retail continued to outperform, supported by sustained demand at liquor outlets. UPI spending at beer, wine, and liquor shops surged 79 percent year-on-year in April, although growth moderated from the triple-digit rates seen through much of 2025 as digital payments became more widespread across the category. Cigar shops and tobacco stands also recorded a strong 48 percent increase in spending.

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Consumer Staples Categories Remain Robust

Consumer staples categories remained robust as well. Spending at grocery stores and supermarkets rose 38 percent, while dairies expanded 36 percent during the month. In contrast, fuel-related spending showed signs of moderation, with service stations recording growth of 19 percent, continuing the slowdown from the exceptionally strong expansion seen in 2024 and early 2025.

Online Consumption Trends Remain Strong

Online consumption trends remained particularly strong, with spending on online marketplaces rising 82 percent year-on-year in April. Purchases of digital gold surged more than 258 percent amid record bullion prices and heightened investor interest. However, telecommunication services saw growth slow sharply to around 2 percent, indicating weaker momentum in that segment.