Asda finds family spending power is recovering

Wednesday, April 20th 2011
Family spending power 'is recovering'
The typical household's discretionary income rose from February to March.

The average UK family had £10 less to spend each week in March 2011 than at the same time last year, according to the latest Asda Income Tracker (AIT).

Researchers found the typical household had £172 of discretionary income at their disposal every week in March, 5.6 per cent less than the figure recorded 12 months previously.

The lowest fall in spending power was recorded in London, while Northern Ireland faced the highest drop.

Although the average family is still worse off than in 2010, the result marks the first month-on-month improvement for more than a year.

February's AIT showed spending power was down £11 per week year on year, representing a fall of 6.2 per cent.

Andy Clarke, chief executive and president of Asda, said low prices can make a major difference to the amount of money families have left over at the end of each month.

Managing economist at Cebr Charles Davis added: "Falling food prices took away some of the pressure on household finances in March - though the rising cost of petrol and transport continues to place downward pressure on discretionary income."

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