Families across the UK saw another rise in spending power in June, with average discretionary income once again reaching £201 a week, according to Asda’s latest monthly Income Tracker.
The figures reveal that families enjoyed an extra £12 a week (6.2%) on average in June, compared to the same period last year. The increase marks the 20th consecutive month of double-digit growth in spending power, with total average discretionary income remaining at a record level since the Income Tracker began in 2008.
The data suggested that people’s income was being boosted by low unemployment, the falling cost of food and drink, and lower mortgage payments.
However, while discretionary income rose overall, the rate of growth in spending power slowed slightly, falling below 7% for the first time in two months. Part of this can be attributed to a rise in consumer price inflation, which reached its highest rate since late 2014 (0.5%).
Transport costs also provided upward pressure on overall levels on inflation, following an increase in the cost of airfares for flights within Europe, as well as a rise in the price of petrol.
Sam Alderson, Economist, Cebr, said: “Whilst the latest data shows a slight slowing in spending power growth, we continue to see a picture of broad increases in discretionary incomes across the country.
“In the uncertain economic environment the UK now faces, the gains in spending power seen in recent years cannot be understated. Whilst consumers have understandably lost some confidence in recent weeks, improved finances should provide some support in navigating the uncertain outlook.”
An Asda spokesperson added: “While a rise in consumer price inflation and transport costs influenced the overall growth in consumer spending power, families across the UK continued to enjoy some buoyancy in their bank balances last month thanks to a continued fall in essential items and steady levels of wage growth.
“Building on this, record levels of unemployment throughout Britain should boost confidence.”
Commenting on the Brexit vote, they added: “With June’s Income Tracker continuing on the positive incline we have been used to over the last year and a half, it remains to be seen how recent events will affect disposable income in the coming months.”