Savings from covid keeping the markets going

People’s savings from the covid period have kept the economy going, despite the current cost of living squeeze, according to James Pomeroy, global economist at HSBC.

Pomeroy delivered an economic address at the Annual Hotel Conference in Manchester last week.

Another factor that’s fuelling activity in hotels is a big divergence between the have and have nots.

Low-income households are forced to spend all their cash on food and rent, while higher income households still have substantial disposable income.

In the years ahead Pomeroy was positive, saying that increases to wages are likely to fuel more spending, and continue staving off a recession.