Consumers are feeling more pessimistic about the UK economy than they were at the end of last year, according to a new survey from Lloyds Bank.
However, the Lloyds Bank Spending Power Report also shows that millennials are feeling more positive about their own finances. Among a group of18-24 year olds asked about their own job security said they are more upbeat, with 79 per cent feeling positive about their prospects.
And 18-24 year olds who work (full-time, part-time or self-employed) expect their annual income to rise on average by £1,391 over the next year, a rise of 4.9 per cent on the average annual salary of £28,600. Working 25-34 year olds predict they’ll receive an average pay rise of £1,274.50 in 12 months’ time, significantly more than the average predicted increase of £622.50 among those who work across all age ranges.
This contrasts with those over 45 who expect their income to decrease by this time next year, and despite research from the Resolution Foundation predicting zero wage growth in the UK in 2018.
“Although inflation fears continue to concern consumers, it is positive to see that younger people seem more upbeat about their own job security and future earning potential," said Robin Bulloch, managing director of Lloyds Bank.
"It remains to be seen whether predictions about their pay increasing will be accurate, but any rise in incomes will provide a welcome boost to the economy and help people with the rising cost of living."