Spending Power Report
20 August 2012
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- Spending power growth flattened out in July, as income growth weakened further.
- After inflation, spending power showed no growth in July compared with the same time last year, meaning consumers had no extra money to spend on discretionary items last month.
- Income growth remains weak at 2.4% on a year ago. However, with inflation falling in recent months, income growth remained positive in real terms in July (0.3%).
- Annual growth in essential spending slowed for the fourth consecutive month and at 3.2% was at its lowest level since November 2011. This was largely driven by falling required debt repayments and slowing growth in automotive fuel spending.