The latest Asda Income Tracker, which charts household income after tax, has found that last month spending power was £16.56 higher compared with a year ago. It is also the fifth consecutive month of growth, despite rising fuel prices.
As consumers flood to parks, beaches and back gardens to celebrate the good weather, some are altering their prior thrifty behaviour. According to a separate survey, sales in spirits and soft drinks have risen, with consumers allowing the good weather to motivate their financial behaviour.
The notoriously cold British summer has warmed up, with the economy similarly showing signs of improvement. Consumers cannot be expected to change their behaviour alone, and businesses must also make an effort to gauge interest. At the Credit Protection Association, we encourage our Members to free up cash flow which can then go towards building up their business and thwarting competition.
Kay Neufeld, managing economist at CEBR, said that households continued to benefit from falling inflation, which was 2.4 per cent in the year to last month and robust wage growth. He said: “Inflationary trends subside across most categories, though rising oil prices are a source of worry for motorists.”