Asda Income Tracker shows rise in disposable spend to £171 per week

The retailer’s monthly study found that the average household was £1 better off in June compared to the same month in 2013 and had discretionary income of £171 a week

While it was the ninth month in a row to show a rise, the rate of growth was slower than in previous months.

Lower car fuel costs, flat food prices and lower mortgage interest payments all fed through to leave consumers with more money in their pockets.

However slow wage growth, an essential item inflation rate of 1.6% prompted partly by retailers starting their summer Sales later this year, and increased utility costs constrained the rate of growth in disposable income.

Asda chief executive Andy Clarke said: “Over the past month families have not felt the same level of benefit in their household budgets that the positive headlines about economic recovery that we’ve seen in recent weeks would suggest.

“Whilst some regions continue to step on in their economic recovery – such as London and the Midlands – others such as the South West have actually seen a step back this quarter indicating that recovery still remains a postcode lottery.

“Although I know that for shoppers a pound a week extra in their pockets will still make a difference, we must recognise that there will need to be greater, prolonged consistency in our economic indicators before we can claim a full recovery.”