Spending power grows in Yorkshire
HOUSEHOLDS in Yorkshire and the Humber are £5 better off a month, according to Asda’s latest Income Tracker.
According to the latest figures, released today by the Leeds-headquartered supermarket, the average family in Yorkshire and the Humber had £149 a week of discretionary income in March 2014 – 3.6% more compared to the same month last year. The rise in discretionary income – the income left once taxes and the spend on essentials like rent, utilities and bills have been deducted – is the largest increase seen since September 2012, boosted by rising wages, falling unemployment and a slowdown in the rate of inflation.
The average UK family had £170 a week of discretionary income in March 2014 – 4.3% more compared to the same month last year – and edging closer to the record high of £174 seen in January 2010.
Falling unemployment, which dropped below 7% in March for the first time since 2009, helped to boost household finances with more than 30 million people now in work – 691,000 more than last year. In addition to more people in work, family spending power was also supported by rising wage growth. The rate of inflation slowed even further in March, dropping well beneath the 2% Bank of England target to 1.6%, helped in large part by a 6.6% fall in the cost of petrol.
President and CEO of Asda, Andy Clarke, said: “In recent months I have been keen to point out that recovery cannot just be focussed on London and the South East – which is why I am delighted to see that this month, regions like the North East and Northern Ireland are finally enjoying a step on in their recovery.
“With household spend increasing for the sixth month in a row, there now appears to be a real momentum behind the economic recovery and this is being felt across all regions of the UK.
“Spending power is growing and unemployment is falling. Importantly though, these factors are combined with a fall in the price of petrol and food inflation, meaning that families have more breathing space when balancing the budget.”
Rob Harbron, senior economist at the Centre for Economics and Business Research (CEBR), added: “It is encouraging to see a further increase in household spending power, as the Asda Income Tracker saw its fastest growth rate since late 2012.
“A slowdown in inflation coupled with accelerating wage growth is helping to raise the average household spending power. Moreover, robust economic growth is expected to continue, which means it is likely that discretionary incomes will continue to rise over the coming months.”
