If you feel that spending money is not as much fun as it used to be, you’re right. Rising debt servicing costs and utility bills mean that households’ spending on “essential” goods and services has recently been rising as a share of income. By contrast, the share of spending on discretionary or “fun” items has been falling. While the share of spending devoted to essential items is unlikely to rise much further, there’s little chance of it falling back, either.
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