This page has been archived and commenting is disabled.

UK Disposable Income Plunges Most In 25 Years

Tyler Durden's picture




 

Having miraculously avoided the triple-dip recession and amid a bubbling housing (and stock) market, the average household in the UK is not doing so great. While this may not come as a surprise to many that these two things can be so disconnected, it is simply stunning that UK Disposable Income collapsed in Q1 by its fastest rate in 25 years to its lowest level in almost 8 years.

 


With BoE's Mervyn King on his way out proclaiming that the worst is behind them and "recovery is in sight," perhaps it is Sainsbury's CEO's comments that are most prophetic "It’s unrealistic [for politicians] to paint a picture which is not the reality that consumers are currently experiencing," he said, adding "nobody should be planning their business today if they're customer-facing on an expectation that consumers have extra money to spend."

 

Chart: Bloomberg

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Thu, 06/27/2013 - 13:29 | 3699778 idea_hamster
idea_hamster's picture

Au trying to bend over and grab the 11 handle....

No one would try to bang the close at the Crimex, now would they?

Thu, 06/27/2013 - 13:54 | 3699896 max2205
max2205's picture

No Moar Meat for you....

Thu, 06/27/2013 - 14:04 | 3699952 Popo
Popo's picture

I'm looking at the above chart and trying to see something that qualifies as a "plunge".

Thu, 06/27/2013 - 17:59 | 3701142 g'kar
g'kar's picture

Whenever I see the word plunge, I always get a visual of the eddy in a toilet bowl.

Thu, 06/27/2013 - 13:28 | 3699781 the not so migh...
the not so mighty maximiza's picture

tALLY ho,  UH OH

 

Thu, 06/27/2013 - 13:30 | 3699786 l1b3rty
l1b3rty's picture

this is no big deal. This is why God invented gambling. The brits can make that 25% at the local casino. 

Move along.

http://goldsilverbitcoin.com

Thu, 06/27/2013 - 13:36 | 3699788 francis_sawyer
francis_sawyer's picture

"In this sweet ol country where I come from nobody ever works & nothing gets done WE HANG FIRE"

"Having money is a full time job... I don't need no aggravation I'm a lazy slob I HANG FIRE"

~~~

http://www.youtube.com/watch?v=ddY4MZCzlks

Thu, 06/27/2013 - 13:59 | 3699925 disabledvet
disabledvet's picture

"Rolling Stones attack the Beach Boys. And by extension the entire State of California." BIG swing and a miss. http://www.youtube.com/watch?v=uB3F6645zwM

Thu, 06/27/2013 - 14:06 | 3699963 WhyDoesItHurtWh...
WhyDoesItHurtWhen iPee's picture

HANG FIRE (a bullet when fired that does not go off or dud round)

 

Thu, 06/27/2013 - 13:33 | 3699795 FuzzyDunlop21
FuzzyDunlop21's picture

Looks like Phase I of daily gold manipulation is now underway

Thu, 06/27/2013 - 13:34 | 3699799 fonzannoon
fonzannoon's picture

here is the question, who would step in and buy gold here, and by gold I mean GLD. the real gold bulls are buying phyz and everyone else is dumping paper.

who would buy paper?

I don't see anything other than a continued implosion until either the paper market breaks and phyz reigns supreme, or we all find out we were delusional. 

Thu, 06/27/2013 - 13:38 | 3699815 francis_sawyer
francis_sawyer's picture

Or until somebody discovers some Annunaki kryptonite...

Thu, 06/27/2013 - 13:40 | 3699830 timbo_em
timbo_em's picture

This is totally possimpible! The BoE is printing wealth in large quantities and the government is doing its very best to (re-)inflate the housing bubble.

Maybe the British people can save some money on the upcoming power cuts?

Thu, 06/27/2013 - 13:44 | 3699850 francis_sawyer
francis_sawyer's picture

I doubt it... They're drawing up models on taxing the farts out of your ass as we speak...

Thu, 06/27/2013 - 14:08 | 3699978 SAT 800
SAT 800's picture

Maybe their windmills will save them. The crazy government is gaga over "the environment"; they think they can influence the climate.

Thu, 06/27/2013 - 14:16 | 3700032 francis_sawyer
francis_sawyer's picture

They think they can con sheep into thinking they can control the climate & line their pockets with the swindle... There ~ fixed it...

Thu, 06/27/2013 - 13:48 | 3699865 Bearwagon
Bearwagon's picture

Uh, oh. Like "all quiet on the western front" ...

Thu, 06/27/2013 - 13:48 | 3699866 konputa
konputa's picture

Thatcher 2.0 or some shit.

Thu, 06/27/2013 - 13:48 | 3699867 buzzsaw99
buzzsaw99's picture

...You cocky farmers never need fret,
Your skinflint wives I'll not forget.
And I'm not a feller that's game to bet,
You're over your head and heels in debt.

With your hats of bark and your old dirt floors,
And your daughters never wear any drawers
Nor any kinds of boots and shoes;
They're wild in the bush like kangaroos!

A pannikin of flour and a sheet of bark
To wallop up a damper in the dark
With a ra-dum, ra-dum, rub-a-dub-dub,
We'll send them home in a lime-juice tub.

Well here we are in New South Wales,
Shearing lambs with daggy tails.
With a ra-dum, ra-dum, rub-a-dub-dub,
We'll send them home in a lime-juice tub.

Thu, 06/27/2013 - 13:56 | 3699880 THE DORK OF CORK
THE DORK OF CORK's picture

From the UK March energy trends publication..........

 

"Total indigenous UK production of crude oil and Natural Gas Liquids (NGL) in Q1 2013 was 

16.1 per cent lower than a year ago. A key driver was the suspension of production at the 

Schiehallion oil field which is due to remain closed for three to four years. Production increased 

on Q4 2012 as production on the Buzzard field came back on stream"

 

Energy consumption has risen (but much of this is lower quality fuels with much higher transformation losses in a very colds Spring)

Higher quality oil & transport energy consumption is down.

 

To remain closed for 3 or 4 years ??????????

Looks like the very deep water Schiehallion field is fucked.

 

http://en.wikipedia.org/wiki/Schiehallion_oilfield

Thu, 06/27/2013 - 14:06 | 3699966 SAT 800
SAT 800's picture

Within two years the idea of a $1.50 pound sterling will seem hilarious. It's ridiculous right now.

Thu, 06/27/2013 - 13:51 | 3699882 dcb
dcb's picture

they need more inflation LOL

Thu, 06/27/2013 - 14:27 | 3700099 Pareto
Pareto's picture

.......and Mark Carney is just the man to give it to them.

Thu, 06/27/2013 - 14:01 | 3699931 SAT 800
SAT 800's picture

This is my pick for the currency that needs to go "puff". It's a hollow economy, or the ghost of an economy, or a joke called an economy. The currency is hugely over-valued; probably because of the "apparent wealth" from the machinations of the "City"; aka the magic square mile. Perfect example of the "dead man walking".

Thu, 06/27/2013 - 14:09 | 3699988 THE DORK OF CORK
THE DORK OF CORK's picture

@Sat 800

 

As long as they can externalise the losses Sterling will be the last man standing in Europe.

 

http://notesonthefront.typepad.com/politicaleconomy/2013/06/bloody-disaster.html

 

The UK is almost unique in Europe in that its energy consumption (although of a poorer quality) is rising.

It can simply outbid non sov Europe for fuel.........now mainly coal.

 

"Steam coal imports originating from the USA in 

quarter 1 2013 more than doubled in comparison to 

the same quarter in 2012 to 2.9 million tonnes"

 

Thu, 06/27/2013 - 14:04 | 3699948 SAT 800
SAT 800's picture

The currency would be over-valued at par with the "dollar"; as it is it's over 1.50; I'm short from 1.56$ and I'll just maintain that until the market takes me out on a zero loss stop; or it finally falls apart. Great example of what you do with "momentum"; and in this case the momentum is left over from the 19th. Century ! The once great Britain, now an impoverished Island.

Thu, 06/27/2013 - 14:22 | 3700066 Inthemix96
Inthemix96's picture

Let me enlighten you lot as a Britisher.

People are hurting here folks and I mean real hurting, take the fact the local garage to me is running diesel at £139.9 per litre, and a packet of 20 cigarettes (Marlboro) is £8.20.

Wages are declining year on year, and inflation is running rampant through all parts of the economy.

Dont forget folks, the MINIMUM wage here is £6.19 per hour, nation wide.

Tell you anything folks?

It tells me this elastic band of an economy is pulled taught, and at some point (before this year is out) it will snap.

Welcome to the jungle folks, unfolding real time.

Thu, 06/27/2013 - 14:30 | 3700095 Insignificunt
Insignificunt's picture

Thank fuck we're all in it together then eh?

Thu, 06/27/2013 - 14:36 | 3700158 Inthemix96
Inthemix96's picture

Nice handle mate.

Believe me if you want on this but it is true,

Just through my job I know some old folk who can either heat their homes or eat.  Thats putting it in harsh terms and cutting the bullshit but true.  I personaly know some old folk who use their bus pass all day riding buses to keep warm so they have enough left to buy food for themselves.

And this is 2013?  While the cunt fuckers who caused this swan about saying what you said eh?  All in this together are we?

I am ashamed of this country mate.  Disgusted we have been reduced so far for what?  For bankers and politicians?

I am burning with rage what these sons of bitches are doing to the whole country while they get away scott free with no punishment for outrageous and ruinatious behaviour.

 

Thu, 06/27/2013 - 15:24 | 3700466 Insignificunt
Insignificunt's picture

I turned my heating on for a total of about 10 hours last winter, and I live in Scotland.

I know a lot of people who are in full time work and earning buttons - £12-13K a year - who are simply out of fucking options at this point (but hey that's fresh meat for those parasitic cunts Wonga et al eh?).

The saddest part of it all is that almost none of these poor fuckers can join the dots and see how and why they have been deliberatley shafted by a power system that is determined to extract every last fucking ounce of wealth that the poor ever accumulate.

Make no mistake, we are headed for feudalism 2.0

Thu, 06/27/2013 - 15:49 | 3700579 SAT 800
SAT 800's picture

Feudalism might be an improvement. Don't forget to vote for Independence. The Scots are the "designated poor" as far as the rulers in London are concerned. At one time you could just gather everyone together and march south with your swords and pikes; alas, no more. There's a lot you can do as an independent nation that you cannot do as a member of the clusterfuck.

Thu, 06/27/2013 - 16:13 | 3700682 Sandmann
Sandmann's picture

Scots get higher public spending per capita than the English. The Scots are not poorer than people in Northern England

Thu, 06/27/2013 - 16:16 | 3700712 Insignificunt
Insignificunt's picture

At this stage in the game I'm not sure if independence really means anything. I have no doubts whatsoever that had something analogous to the 2008 crisis happened in an independent Scotland, the political class would have bailed out the banks and thrown the people to the fucking wolves. 

I absolutely detest almost everything the British state stands for but I fear that an independent Scotland would turn itself into a corporate bordello as Ireland did, and I'm sure the Dork of Cork can tell everyone how that turned out.

Thu, 06/27/2013 - 17:01 | 3700918 THE DORK OF CORK
THE DORK OF CORK's picture

I concur.

Independence only means something when you can print greenbacks (military fiat) outside the banking system.

 

Even the 10 shilling notes of 1914 payed interest................The UK is a banking (see Bank of st George) hellhole.

Thu, 06/27/2013 - 17:22 | 3701004 Insignificunt
Insignificunt's picture

And Salmond wants to keep the fucking £!

Thu, 06/27/2013 - 20:13 | 3701513 THE DORK OF CORK
THE DORK OF CORK's picture

Its better then the Euro.............the euro is the 9th circle.

The euro is a instrument of the city and perhaps the little city of Edinburgh..........

 

Its better to be in Sterling .....the control center of euroland.

Fri, 06/28/2013 - 09:51 | 3703106 Wile-E-Coyote
Wile-E-Coyote's picture

Lol........ What do you want the Euro. I know some Scots are irrational contrarians towards the English but that is taking it a bit far.

Fri, 06/28/2013 - 11:20 | 3703356 Insignificunt
Insignificunt's picture

It has nothing to with a contrarian attitude towards the English. I just cannot see how it makes sense to assert national sovereignty whilst handing over control of monetary policy to a foreign central bank.

If the only choice on the table here is financial catastrophe sooner (Euro) or later (GBP), then the entire independence excercise is a waste of time.

For what it's worth. I don't think there's any chance of a Yes vote. 90% of people I have spoken to simply don't care either way.

Thu, 06/27/2013 - 17:02 | 3700919 THE DORK OF CORK
THE DORK OF CORK's picture

 Double post.

Fri, 06/28/2013 - 09:56 | 3703121 Wile-E-Coyote
Wile-E-Coyote's picture

I turned my heating on for a total of about 10 hours last winter, and I live in Scotland

Really so how did you heat your home then. You would have had ice inside the house the winter we just had.

http://www.youtube.com/watch?v=Xe1a1wHxTyo&feature=player_detailpage

Thu, 06/27/2013 - 16:53 | 3700893 Jimbodude
Jimbodude's picture

35 years ago Britain was an industrial powerhouse. Now it gets its GDP from people spending their 1000% Wonga loans in Sainsburys. Things are looking up though. The double dip never happened and cheap government backed mortgages will set off a new housing boom and everybody will be rich again.

Thu, 06/27/2013 - 17:13 | 3700963 Insignificunt
Insignificunt's picture

At least the government backed mortgages cut out the middle man.

In the next housing crash the British taxpayer will eat the losses directly without having to pay any fucking bonuses.

Does that count as progress?

Fri, 06/28/2013 - 05:20 | 3702630 tsouth
tsouth's picture

ooh i like this idea.

Imagine all that lovely growth too from the huge influx from Romania and Bulgaria when they join the EU next year. We can house them in our sheds.

http://www.telegraph.co.uk/news/uknews/immigration/10143697/Blighted-by-an-epidemic-of-beds-in-sheds.html

Stuff Britain full of immigrants and concrete the countryside, devalue the pound by another 50%, and frack Lancashire to pieces, winner.

Fri, 06/28/2013 - 10:02 | 3703134 Wile-E-Coyote
Wile-E-Coyote's picture

35Yrs ago: Thatcher (the spawn of Satan) started to dismantle engineering and manufacturing in the UK, for the new industry of financial services. The rest is history. Ther UK is fucked full stop. The worst of this depression has yet to visit Britain.

Fri, 06/28/2013 - 09:40 | 3703079 Wile-E-Coyote
Wile-E-Coyote's picture

I think you might want to change that to £1.39 a litre, and remember a US gallon is smaller than an Imperial gallon. 1 UK gallon = 4.55 litres therefore Petrol in the UK is typically £6.32 a gallon x 0.832= £5.26 US equivalent which at current exchange rate of $1.52 to £1 = $8 per US gallon equivalent.

Thu, 06/27/2013 - 14:28 | 3700083 THE DORK OF CORK
THE DORK OF CORK's picture

LNG imports have imploded on a massive scale.

LNG imports 

Y2011 : 270,733

Y2012 :147,879

Y2011 Q1 : 78,370

Y2012 Q1 : 38,645

Y2013 Q1 : 15,986

 

So much for the LNG Mirage..............its back to coal (external coal now)

 

This after the coldest March in 50 years..............

 

Lack of Nuclear kills far more people then nuke accidents ..........its called poverty.

Thu, 06/27/2013 - 15:19 | 3700433 SAT 800
SAT 800's picture

Oh, don't worry the Global Warming will make it all like Spring Time and all.

Thu, 06/27/2013 - 14:28 | 3700110 NipponMarketBlog
Thu, 06/27/2013 - 14:45 | 3700217 THE DORK OF CORK
THE DORK OF CORK's picture

Another Gem from the UK trends report.

 

Demand for aviation fuels decreased by 7.7 per cent. 

Whilst passenger numbers remain robust, indications 

were that increasing fuel efficiency and some 

rationalisation of routes (including greater numbers of 

passengers per plane and route sharing between 

airline operators) have contributed to this decrease.

 

Lol.

The car and plane business is over.......but it seems this will take some time given the UK desperation to create Credit for its banks & cars and not 1914 like fiat.

Thu, 06/27/2013 - 15:15 | 3700409 SAT 800
SAT 800's picture

Your posts are very valuable. Very interesting numbers for the Steam Coal. As a Scot I'm not exactly crying big tears for the Imperialist Bastards; but they will put their citizens thru hell playing pretend.

Thu, 06/27/2013 - 16:15 | 3700706 Sandmann
Sandmann's picture

Maybe they are refuelling abroad ?

Fri, 06/28/2013 - 10:04 | 3703143 Wile-E-Coyote
Wile-E-Coyote's picture

More fuel efficient aircraft that carry more passengers.

Thu, 06/27/2013 - 15:31 | 3700498 Shevva
Shevva's picture

Easy to say why eveything from food, train tickets to energy costs inflating at <7% a year for at least the last 5 years will always reduce disposable income, the politicos couldn't give a shit though tax is paid on everything, expect a 2%+ vat increase after the next election.

Thu, 06/27/2013 - 16:15 | 3700696 Sandmann
Sandmann's picture

Highest rail fares in Europe. Highest Airline Tax in Europe. Fly to Aberdeen and it costs twice the price of flying to New York.

Thu, 06/27/2013 - 16:11 | 3700642 GreatUncle
GreatUncle's picture

Yesterday in the UK we had a whole lecture on how well it is going? Really. The collapse in disposable income not surprised. This though, everybody missed it ha,ha and noone said a word.

The UK has played the QE card, bail out the banks, etc. etc. Reckon this is no more than more QE myself but of course NOT CALLED QE! Is sort of got lost in the smoke and mirrors of yesterday all 70 billion pounds worth of it.

http://www.telegraph.co.uk/finance/economics/10143049/BoE-softens-rules-for-banks-to-give-economy-70bn-boost.html

[edit] This money is in reality all part of the QE and and did not really touch the economy. Well this is how it will enter the economy voila inflation by Carney.

Thu, 06/27/2013 - 16:12 | 3700676 Sandmann
Sandmann's picture

So true, but it is deliberate. Osborne wanted to do a Geoffrey Howe 1980 Induced Recession because he had no idea about what was going on.  This is a complete disaster that has run out of control and is basically irreversible as it is propped up by 0.5% funding which exceeds the growth in the economy

Thu, 06/27/2013 - 19:30 | 3701382 Element
Element's picture

Not at GCHQ, they got a bonus!

--

UK spy agencies get $154mn bonus amid sweeping cuts

Edited time: June 27, 2013 11:43

http://rt.com/news/uk-intelligence-spy-budget-increase-252/

Do NOT follow this link or you will be banned from the site!