The arrival of 2010 has not resulted in an improvement in family finances, according to the latest Asda Income Tracker.
January 2010 marks the second consecutive month that the average UK family is no better off than a year earlier. As a result, the average UK household had £164 a week of discretionary income in January 2010, a marginal 0.1% higher than a year earlier.
The continued pressure on family finances is in spite of an increase in the rate of growth in gross income, which has risen to 2.5% year-on-year in January, compared to an increase of 1.7% year-on-year in December. This is higher due to base effects from steep drops in early 2009 at the recession’s lowest point.
Data from the Office of National Statistics has revealed that the annual growth in earnings has declined substantially during this recession; averaging 1.4% across 2009. Although, in recent months earnings growth has stabilised, in general earnings growth is still much weaker than the 4.0% to 4.5% that was typical before the recession.
Andy Bond, Asda president and CEO, said: “This latest economic snapshot reflects what our customers already know, that 2010 is shaping up to be a tough year.
“Despite the official end of the recession, our customers are telling us they’re still worried about job security and balancing the family finances.
“With transport costs on the up and food inflation rising, we’re working hard to keep prices down for our customers and would urge other businesses to do everything they can to help ease the financial strain.”
Source: Asda
