The latest figures from Asda’s Income Tracker reveals households have seen their average disposable income grow each month for an entire year.
Gross income for the average household in the UK grew by 10.1%, and at £233 per week was £21.50 a week higher in March 2024 than it was a year before.
This marks 12 consecutive months of growth, largely driven by continued elevated wage growth, decreased energy costs and significant deceleration in core inflation, which is now nearing the Bank of England’s target rate.
The UK-wide Income Tracker, which is produced for Asda by the Centre for Economics and Business Research (CEBR), also recorded its strongest quarterly growth since Q3 2021, with all but one UK region, the East Midlands, witnessing annual growth in spending power.
Both Scotland and the east of England recorded spending power values above the UK-wide average in Q1, at £235 and £250 per week, respectively.
London recorded the highest spending power value at £311 per week across Q1. The capital is now the only UK region where spending power has now surpassed pre-crisis levels.
In contrast, Northern Ireland recorded the weakest spending power of £112, a £199 discrepancy when compared to the strongest value witnessed in London.
“The Income Tracker is showing sustained improvement, as households gradually rebound from the severe impacts of the cost of living crisis,” said CEBR managing economist Sam Miley.
“Consumer spending and activity is expected to be further supported by a significant reduction in inflation driven by decreased energy costs for households from April onward, along with recent policy measures, not least due to cuts in national insurance. This is expected to result in a sharp uptick in household spending power in April.”
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