Britons' Inflation-Adjusted Incomes in Worst Slump for Six YearsBy
U.K. consumers saw their finances deteriorate in the second quarter, putting them in the longest slump in real disposable incomes since 2011.
Even as both gross domestic product and net national disposable income rose on a per-head basis, adjusted for inflation, households saw a 1.1 percent decline from a year earlier, according the Office for National Statistics. Its “Economic Well-Being” report compiles previously available data to supplement traditional measures such as GDP.
That’s leaving consumers with a subdued outlook for both their own finances and the overall economy, just as speculation builds that the Bank of England is approaching its first interest-rate increase in more than a decade.
The ONS cited analysis by GfK that suggests that the worsening in sentiment may have been caused by the pressure from inflation and weak wage growth, as well as economic uncertainty abroad and reduced confidence related to Brexit.