'Sharp uptick' in people's spending power expected as Asda releases positive Income Tracker data

Gross income for the average UK household grew by 10.1 per cent and at £233 per week, was £21.50 a week higher in March 2024 than it was a year before.

This marks 12 consecutive months of growth, which has largely been driven by continued elevated wage growth, decreased energy costs and significant deceleration in core inflation which is now nearing the Bank of England’s target rate.

Sam Miley, Managing Economist and Forecasting Lead at Cebr who produce the Income Tracker on behalf of Asda, said further improvements are expected when the April figures are finalised.

“The Income Tracker is showing sustained improvement, as households gradually rebound from the severe impacts of the cost-of-living crisis.

"Consumer spending and activity is expected to be further supported by a significant reduction in inflation driven by decreased energy costs for households from April onward, along with recent policy measures, not least due to cuts in National Insurance. This is expected to result in a sharp uptick in household spending power in April.”

The UK-wide Income Tracker also recorded its strongest quarterly growth since Q3 2021, with all but one UK region, the East Midlands, witnessing annual growth in spending power.

Both Scotland and the East of England recorded spending power values above the UK-wide average in Q1, at £235 and £250 per week, respectively.

Yorkshire’s weekly figure is estimated at £199.

London recorded the highest spending power value at £311 per week across Q1. The capital is now the only UK region where spending power has now surpassed pre-crisis levels.