Families are using improvements in living standards to top up their savings rather than splash out on retail purchases.
According to a survey by the Centre for Economics and Business Research and Asda, Britons cut their spending by 0.3 per cent on an annual basis in the three months to the end of June, despite disposable incomes rising sharply by 14 per cent over the same period. Researchers said that the average family had a weekly disposable income of £245 in July, up from £241 in the previous month.
Asda and CEBR subtract inflation, essential bills and taxes from nominal incomes to generate an estimate of weekly spending power. Strong wages growth over the past two years and a general downward shift in inflation have
