- The average UK household had a weekly disposable income of £197 in January, up £12 on January 2015
- Annual growth in spending power fell for the fourth consecutive month – due to a slow down in wage growth and a continued increase in inflation
- Still, as household incomes continue to increase faster than the cost of essential items, outlook for UK family spending power remains positive
Families across the UK enjoyed another double-digit increase in spending power in the first month of the year, according to Asda’s latest Income Tracker. As employment across the UK continued to rise, the average UK household discretionary income reached £197 a week in January 2016, up £12 (6.7% year-on-year) compared to the same time last year.
However, the latest findings also revealed that, while bank accounts continue to receive a boost, January marked the fourth consecutive month where the year-on-year rate of spending power growth has fallen, thanks to a slowdown in wage growth and a steady increase in inflation. While the economic outlook remains relatively positive, Asda’s latest Income Tracker suggests that a slowing rate of recovery is having a knock on effect on British purse strings, with disposable income set to continue to grow at a slower rate than those seen through much of 2015.Read more