Frugal 30-somethings ‘a drag on economy’
Lacklustre consumer spending has been driven by Britons in their 30s, fuelling fears that the UK’s stuttering start to 2018 “may not be a blip”, economists have warned.
The report by Bank of America Merrill Lynch (BAML) found a huge disconnect between the confidence in the economy of people in their 30s and their willingness to spend.
Growth slowed to 0.1pc in a weather-battered first quarter, and the poor performance could persist as the age group continues to save its money rather than spend.
Only two age groups, 31-38 and 54-plus, have become more reticent to spend in 2018, with those in their 30s suffering the sharpest fall by far.
BAML argued that slowing house price inflation, dwindling credit and expectations of interest rate rises could be spooking the generation into a prolonged period of belt-tightening.
Britons in their 30s hold more unsecured debt than any other age group and are also most likely to be mortgage holders.