Skip to content
Search
AI Powered
Latest Stories

Disposable income on the rise, says Asda

Disposable income on the rise, says Asda
iStock image
Getty Images

Disposable incomes in Britain have risen at the fastest pace in three years, although they still remain below a peak reached in 2021.

According to a recent research carried out by supermarket Asda and the consultancy Centre for Economics and Business Research, weekly disposable incomes have accelerated by 13.5 per cent over the past three months on an annual basis, the fastest pace since 2021.


The improvement in average household finances was driven by a marked slowdown in inflation and by strong nominal wages growth. According to the Office for National Statistics, inflation stabilised at the Bank of England’s 2 per cent target for a second month in a row in June, while average wages increased by 5.7 per cent.

However, despite the rise in disposable incomes, households are still reeling from the impact of rising living costs. According to Asda and CBER, weekly average nominal incomes hit £1,005 in June out of which £613 was spent on essential bills and a further £151 on taxes. After accounting for these costs, average weekly spending power was £240 last month, up by £2.73 from May but still less than £246 recorded in March 2021.

Sam Miley, managing economist and forecasting lead at the CEBR, said, “A second consecutive month of inflation being at target has helped to support household spending power, given that earnings growth is significantly stronger. Though inflation may pick up slightly in the coming months, it is still expected to fall short of income growth for some time. This means that improvements in spending power are set to continue, supporting consumption and the wider economy.”

Additionally, the recovery in real incomes in London has outpaced that of other regions in the UK. According to the latest Asda Income Tracker, average household disposable income in London rose to £351 per week in Q2 – 3.0 per cent up on the pre-pandemic peak of £340 in March 2021, thanks to above average wage growth in the capital.

This represents a significant uplift of £114 per week compared to the amount the average UK family is left with after paying bills and essentials, which stood at £237 per week during the quarter. Only two other regions, Scotland and East of England, had average household disposable incomes above the UK-wide average during the quarter at £238 and £261 per week, respectively.

Whilst these were the only regions to record values above the UK average, the tracker grew by 13.5 per cent on the year marking the strongest quarterly growth in three years. This was largely driven by sharp slowdown in inflation in the quarter, with easing financial pressure on UK households and all regions now reporting slowdown in the cost of essentials.

More for you

David Murray promoted as pladis CMO, Mete Buyurgan takes UK & Ireland helm

Mete Buyurgan (L) and David Murray

David Murray named pladis CMO

Snacking giant pladis has announced David Murray, currently leader of its UK and Ireland enterprise, will transition to the newly created position of global chief commercial officer.

After five years at the helm of pladis UK&I, Murray’s new role will see him take ownership of the company’s global platform and brand strategy along with its commercial transformation.

Keep ReadingShow less
Illegal cigarettes in Meir

Illegal cigarettes

iStock

Thousands of illegal cigarettes seized from Meir shop raids

More than £20,000 worth of illicit tobacco and vapes were seized from multiple premises in an one-day operation in Meir by Trading Standards team along with officers from Stoke-on-Trent City Council and Staffordshire Police.

The operation is the latest across the city that resulted in 13 shops being closed in the last 12 months, and forms part of Operation Cece, which is a National Trading Standards initiative in Partnership with HMRC to tackle illegal tobacco.

Keep ReadingShow less
​Don Julio Tequila

Don Julio Tequila, owned by Diageo. The spirits giant sells billions of dollars worth of tequila and Canadian whisky in the US.

Photo by Anna Webber/Getty Images for Flipper's Boogie Palace

Diageo suggests tougher rules of origin requirements as alternative to Trump’s tariffs

Spirits giant Diageo has suggested the US government consider tougher rules of origin requirements in trade agreements as an alternative to tariffs, a letter to the US Trade Representative showed.

In the March 11 letter, Diageo, the world's top spirits maker caught in the crossfire of US president Donald Trump's effort to remake global trade, argued that new rules of origin could support his aims and benefit the industry.

Keep ReadingShow less
Asda store with Rollback pricing sign for 2024 sales strategy

Asda Express stores offset sales dip at the supermarket

Asda's profits climb despite sales decline, driven by George and Express

Asda on Friday reported a decline in its annual sales for the 2024 financial year, but the retailer has seen profits rising on margin gains.

The supermarket chain said its total revenue for the year to 31 December 2024 declined by 0.8 per cent to £21.7 billion, while like-for-like sales (excluding fuel) were lower by 3.4 per cent.

Keep ReadingShow less
Strategic Ranging of Premium Apple Cider Essential for 2025 Sales

Henry Westons Vintage 500ml is the number one cider SKU in the convenience channel

Crafted cider surge: Retailers urged to embrace premiumisation for sales boost

The unstoppable rise of crafted apple cider is setting the benchmark for success in the UK’s £1.1 billion off-trade cider market, according to the latest Westons Cider Report.

The leading cider producer advises that convenience retailers who prioritise premium products and strategic ranging will be best placed to drive sales in 2025.

Keep ReadingShow less