Whilst consumers may be reluctant to spend due to Brexit-related uncertainty, latest data from the Asda Income Tracker show’s people’s actual spending power is continuing to rise.
Family spending power increased by 6.9% (£14) in the year to August 2019, which is the fastest growth rate since May 2016.
A sharp fall in inflation in August contributed to the boost in spending power. A strong labour market and low unemployment rates also led to higher rates of pay for some.
Kay Neufeld, Economist at Cebr, which compiles the data for Asda, said: “In terms of spending power growth, August clearly is the highlight of the year so far. At 6.9%, the Asda Income Tracker improved at the fastest rate in more than three years, adding further to the positive trajectory for family spending power that has emerged over the past months.
“Households will welcome the current situation in which low unemployment and robust wage growth outweigh the modest inflationary pressures. The good times might not last much longer, however, as indicators of economic activity show a slowing UK economy.”
