Hospitality spending dips in March despite annual growth trend

Three in five are cutting back on eating out at restaurants.

Hospitality spending declined 0.9% in March, although overall spending in the sector remained 7.0% higher compared with the same period last year, according to the National Australia Bank (NAB) Consumer Spend Trend March 2026 report.

The monthly decline indicates a slowdown in momentum, with annual growth easing from peak levels recorded in December.

Spending patterns in March showed consumers cutting back on eating out, whilst takeaway spending remained broadly unchanged, suggesting a continued preference for lower-cost and more convenient dining occasions.

Over the past year, growth across the sector has been uneven. The strongest increases were recorded in catering services and clubs, while takeaway food services and pubs experienced more moderate growth.

The data points to a gradual normalisation in hospitality demand, with performance increasingly diverging across different formats and spending occasions.

Meanwhile, NAB reported that in Q1 2026, 60% of consumers cut, cancelled, or delayed eating out, up from 48% in the previous quarter and 54% in the same period last year, as cost-of-living pressures persist.