A recent study from TransUnion has found that Gen Z individuals in their early 20s are earning less, have more debt, and have higher delinquency rates compared to Millennials when they were the same age. The study focused on the credit usage of 22 to 24-year-old Gen Zers and compared them to Millennials. Both generations have faced economic challenges early in their careers, such as the Covid-19 pandemic for Gen Z and the global financial crisis for Millennials. Rising inflation rates and high-interest rates have also contributed to financial strain for Gen Z individuals. The US credit economy as a whole has seen increased debt levels and delinquencies across various credit products.
Experts suggest that it is crucial for Gen Z individuals to establish healthy financial habits early on in order to set themselves up for success in the future. Charlie Wise, head of global research and consulting at TransUnion, emphasized the importance of understanding what one can afford and not overspending on credit cards. Personal loans can be a useful tool to consolidate credit card debt and make monthly payments more manageable. While there may be cause for concern regarding Gen Z’s financial health, it is viewed more as a wait-and-see situation rather than a crisis. With potential for salary increases as they progress in their careers, it is important for Gen Z individuals to borrow and spend within their means.
In the United Kingdom, the economy has emerged from a short and shallow recession, with GDP growing by 0.6% in the first quarter of the year. This expansion was largely driven by growth in the service sector. The Bank of England has revised its GDP growth forecast for the UK to 0.5% this year, double the previous estimate. There are positive signs of economic recovery, with strong growth in manufacturing and services recorded recently. However, compared to other countries, the UK economy is still facing challenges.
Upcoming events in the financial world include remarks from Federal Reserve officials, earnings reports from companies such as Home Depot and Alibaba, and economic data releases from the Labor Department. The Consumer Price Index and Producer Price Index for April will be released, as well as data on retail sales, small business index, housing market index, jobless benefits applications, housing starts, building permits, and the US leading economic index. These events will provide insights into the current state of the economy, both in the US and globally.
