DISPOSABLE INCOMES AT SIX-YEAR LOW
The average British household is currently enduring the longest decline in disposable income for six years. Consumers are struggling with the combination of inflation and lacklustre wage growth.
Data from the Office for National Statistics (ONS) outlines that real household disposable income fell by 1.1% per head in the second quarter of last year, meaning disposable incomes have declined for four consecutive quarters, marking the longest period of negative growth since the tail end of 2011.
This data coincides with a survey1 disclosing that for the first time in two years, households said they thought their personal financial situation had deteriorated. This perception is likely to have a negative impact on people’s saving and spending habits. It is anticipated that the interest rate rise in November could help temper rising inflation, which has been fuelled further by the Brexit hit pound. Watch this space.
1Eurobarometer Consumer Survey, Oct 2017