The Asda Income Tracker reveals a promising trend for the UK retail industry, as spending power experiences its fourth consecutive monthly boost against a backdrop of decelerating inflation.
The latest data from the Centre for Economics and Business Research unveils a positive outlook for consumers.
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Robust income growth in August
In August 2023, the Asda Income Tracker showed substantial annual growth of 6.8%.
This noteworthy increase marks the most significant year-on-year change since September 2021. With this surge, consumers have reason to be optimistic about their financial well-being.
The Income Tracker has been on a consistent upward trajectory for four months in a row. This sustained growth is primarily attributable to the continued strength in nominal wages, coupled with easing inflationary pressures.
This combination of factors has translated into improved spending power for households across the UK.
Strongest monthly increase since March 2022
On a month-on-month basis, the Income Tracker surged by £5.04 ($6.17) per week in August, resulting in an average weekly discretionary income of £224 for the typical UK household.
This represents the most robust reading since March 2022, indicating that consumers are experiencing a notable boost in their disposable income.
These developments are likely to have a positive impact on the retail sector, with consumers having greater purchasing power to spend on goods and services.
As inflation continues to stabilise, the retail industry can anticipate increased consumer confidence and higher demand for their products.
