–Q2 Real Household disposable income +1.2% q/q; -1.2% y/y
–Q2 Saving Ratio 7.4% vs 5.9% in Q1
LONDON (MNI) — Real household disposable income rose at the
fastest pace for two years in the second quarter, while the saving ratio
increased, figures released, figures released by National Statistics
showed Tuesday.
While the figures appear to show some good news for the beleaguered
household sector, incomes are still down on the year, and most evidence
suggests they are likely to remain squeezed for the foreseeable future
as wages fail to keep up with inflation.
Real household disposable income rose 1.2% on the quarter in Q2,
the largest rise since Q2 2009, following a 1.7% fall in Q1. Incomes
were still down 1.2% on a year earlier.
The saving ratio rose to 7.4% in Q2 from 5.9% in Q1, the highest
since Q3 2010. With economic growth stalling, policy makers would
prefer to see households spending more of their income to boost growth.
— London newsroom: 44 20 7634 1655; email: drobinson@marketnews.com
[TOPICS: MABDS$,M$B$$$,MT$$$$]
