Weak wage growth pressurises family finances

Disposable household income is flat, despite recent positive economic news, according to the ASDA Income Tracker.
The average UK family’s disposable income reached £160 a week in June for the first time this year, but this is down by £5 a week from its peak in February 2010.
Wage growth, or the lack thereof, was a key causal factor in this stagnation, with the benchmark only up one per cent on the year to May – the smallest rise on record.
This was paired with a continued rise in the rate of inflation, which the supermarket said is around three per cent, somewhat higher than the Bank of England’s new head will have hoped for.
However, there is good news in some areas. The north-west of England saw its disposable income rise by £5 year on year – a rise that could indicate the area’s economy has been boosted by recent private sector investment.
ASDA president and chief executive Andy Clarke said: “It is unlikely that consumer confidence will be fully restored until we see a significant improvement in family finances, but the good news is that the cash in our customer’s pockets appears to be stabilising.”