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.