Consumers are expected to suffer a further three years of squeezed spending, resulting in what is becoming known as a “lost decade” for households.
Household income per annum is likely to be below the 4.5{06aeb1921e0b802d2bd9c766bc98fb11cc6a46c2b0593ed9c88a0e29cf417a34}-to-5{06aeb1921e0b802d2bd9c766bc98fb11cc6a46c2b0593ed9c88a0e29cf417a34} rises seen before the financial downturn in 2008.
This in turn will slow consumer spending growth over the next 24 months.
Consumer spending growth is envisaged to be nearer 2{06aeb1921e0b802d2bd9c766bc98fb11cc6a46c2b0593ed9c88a0e29cf417a34} over the period.
Younger people in particular face the most pressure on spending, as unemployment among people in their 20s and 30s remains above average and the cost of buying a property continues to rise.
Source: BBC News