UK Disposable Income Plunges Most In 25 Years
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."
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