RESTAURANTS performed dismally last year, recording a four per cent fall in the volume of receipts over 1993 to a total of $50.1 billion.
This marks a further decline after a fall in 1993 when the volume of restaurant receipts fell three per cent to $48.3 billion over 1992.
Consumers shied away from restaurants and bars amid volatile sentiment on the stock market, a sluggish property market and the trend of rising interest rates.
Warburg Securities chief regional economist Enzio von Pfeil said given the negative wealth effect - the decline in the state of feeling wealthy - people became more cautious in their spending.
He said consumer disposable income was affected by higher mortgage payments.
'Every one percentage point rise in interest rate is equal to about $2.6 billion in disposable income,' he said.
