Spending power growth flattened out in July, as income growth weakened further.
After inflation, spending power showed no growth in July compared with the same time last year, meaning consumers had no extra money to spend on discretionary items last month.
Income growth remains weak at 2.4% on a year ago. However, with inflation falling in recent months, income growth remained positive in real terms in July (0.3%).
Annual growth in essential spending slowed for the fourth consecutive month and at 3.2% was at its lowest level since November 2011. This was largely driven by falling required debt repayments and slowing growth in automotive fuel spending.