Disposable income at nine year low official figures show

Disposable income per head- taking inflation into account, fell by 1% on the previous quarter, the Office for National Statistics (ONS) said.Disposable income at nine year low official figures showThis measure of income is the amount of cash individuals have to spend after tax. Meanwhile, savings levels dropped as families felt the squeeze.

People had less disposable income to spend on average in the first three months of the year than during any quarter since 2003.

The ONS figures show that real household actual income per head- before tax and services provided by the state, fell by 0.6% in the first three months of the year, compared with the previous quarter.

The increase in prices over this period eroded the growth of household income, the ONS said.

Income, primarily from pay weakened. A number of firms had frozen pay because of the financial situation in the UK.

“Finally, sustained population growth led to incomes being spread across a greater number of people, and therefore further reduced the growth of actual income per head,” the ONS said, in the report on the economic position of households.

It estimated on average people have a disposable income of £273 a week, and the ONS figures show that families were cutting their spending and saving levels.

Real household actual expenditure fell in the first three months of the year to its second lowest level since the third quarter of 2003.

However, this safety first approach has also meant that households have been paying off debts such as mortgages, following the financial crisis rather than spending money.

September 12, 2012 · Home Based Jobs · Comments Closed
Tags: , , , , , , , , , , ,  · Posted in: Earn Extra Income, Earn Money, Full Time Jobs, Healthy Living, Home Based Jobs, Home Businesses, Home Jobs, Home Working, How to save commuting costs, Lose Weight Gain Pounds, Part Time Employment, Part Time Jobs, Pension Income, Positive Employment, Self Employed Work, Self Employment, Self Employment Jobs, Temporary Jobs, Uncategorized, Work From Home