December is well known for being a month of over indulgence in everything from eating and drinking to splashing out on gifts and entertaining, often from funds that aren’t available. But it isn’t just this festive month that the nation overspends.
The Office for Budget Responsibility (OBR) stated recently that Brits in general are living well beyond their means and over spending has reached an all time high, more so than at any other point in the past two decades.
Further statistics show that in the first three quarters of 2014, consumer spending increased by 2.1% which, simply doesn’t reflect the growth in wages that overall is limited. All in all this shows fairly poor money management from the nation as well as a decline in savings as people subsidise the lack of income with money they had previously saved for a rainy day.
However, economists have crunched some numbers and they are expecting consumer spending to slow by 2016 as the economy stabilises.