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SQUEEZE CONTINUING; ECONOMY TODAY.

A squeeze on spending power is set to last another three years and result in a "lost decade" for real take-home pay, an influential report said.

The survey by EY ITEM Club points to a slowdown in consumer spending growth over the next two years as annual wage growth up to 2017 is likely to remain well below the 4.5% to 5% rises typical before the financial crisis.

The pace of consumer spending growth is only expected to increase by just over 2% next year and in 2016, which is a significant reduction on the average annual growth rate of 3.7% seen in the pre-crisis decade.

The ITEM Club believes that the record numbers in work, currently at 30.6 million, will continue to grow and act as a check on wage rises.

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Title Annotation:Business
Publication:The Journal (Newcastle, England)
Date:Sep 30, 2014
Words:135
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