Goodbye austerity, hello 'niceties'! Generation Z and Millennials are spending more than before the pandemic
The 15- to 40-year-old population is ready to leave the austerity of the pandemic behind and that is reflected in their spending.
A few weeks ago, a Pinterest study revealed that Centennials will make up for the year 'lost' to the pandemic by spending big. The trend seems to be confirmed according to data from American Express , which indicates that members of Generation Z and Millennials are opening their wallets more frequently than before the arrival of Covid-19 .
While those belonging to Generation X and the so-called 'Boomers' choose to save money for the future or invest it in long-term assets (houses or cars, for example), consumers aged 15 to 40 prefer to live in the present as they the economy is reactivated in much of the world.
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As vaccination spreads in the United States, Gen-Z and Millennial youth have been reported to be spending even more than before the pandemic.
“We assumed that there would be a pent-up demand, not just for travel, but a pent-up demand for consumer goods, and that America's recovery would be as it is now,” said Steve Squeri, CEO of American Express Co. during a virtual conference call. for investors on Friday.
Squeri noted that the average expenses of both groups amount to "125% of what were their pre-Covid levels in 2019." He added that this has helped jump-start overall spending on AmEx cards, although this quarter still remains low compared to pre-pandemic levels.
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The executive indicated that consumers are once again interested in trips (mostly national) and outings to restaurants . However, he noted, corporate travel will return to its pre-pandemic levels until 2023.