Spending Power Report
17 July 2012
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- Spending power improved in June, as income growth outpaced inflation for the first time in the past 12 months.
- Spending power was 0.7% higher, after inflation, than the same time last year, meaning consumers had the equivalent of £80 a year or £7 a month1
- Income growth, although improving, remains weak at 2.8% year-on-year. However, with inflation levels falling in recent months, income growth was positive in real terms in June (0.3%). more to spend on discretionary items.
- At the same time, growth in essential spending has slowed and is at its lowest level so far this year at 3.3%, driven by falling required debt repayments and the slowest growth in automotive fuel spending in over two years.
- The number of consumers who have money left over after meeting their essential outgoings has improved year on year (up 6%), but they still only account for half the population.