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Special Report on Consumer Spending

Consumer spending will continue to outperform the economy as a whole despite being at its lowest level in six years, according to this EY ITEM Club Special Report. 

Key points include:
  • Consumer spending is relatively unaffected by Brexit uncertainty, but a slowing labour market and earnings growth could bite
  • Growth in households’ real disposable income is expected to be slower in the next two years after a spike in 2018, and is likely to be significantly below the post-war average
  • Workers at either end of the income distribution should fare best, with the squeezed middle continuing to feel the pinch

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Mark Gregory
Chief Economist, UK & Ireland

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