Spending power squeeze continues despite falling cost of essentials
Discretionary spending power fell by 0.3% in May as real incomes continue to shrink. On average, this equates to almost £34 a month less than a year ago to spend on non-essential items.
However, growth in essential spending eased, suggesting consumers could be starting to feel the effects of falling inflation.
At 5.1%, annual growth in spending on automotive fuel fell to its lowest level since the index began in January 2010.
Perceptions of the country’s financial and employment situations have deteriorated compared to this time last year.
