Brexit bitesConsumers suffer longest decline in spending power since 1970s British consumers have suffered the longest decline in their spending power since the 1970s, official data showed. The figures from the United Kingdom's Office for National Statistics painted a bleak picture for British consumers who are facing the double hit of rising inflation - caused in large part by the fall in the pound since the Brexit vote - and slowing wage growth.Household disposable income, adjusted for inflation, fell for the third quarter in a row, the ONS said, putting some of the blame on the timing of tax payments.
That was the worst run since the 1970s and took the household savings ratio down to an all-time low of 1.7%.
The Bank of England is watching for signs of a pickup in the economy after the weak start to the year as it plans when to raise interest rates for the first time in a decade.
The ONS confirmed that the economy grew by just 0.2% in the January-March period compared with the previous three months, slowing sharply from the fourth quarter of 2016 when it grew by a quarterly 0.7%.
The sudden slowdown meant Britain went from being one of the fastest-growing economies among the Group of Seven rich nations to its weakest performer in the first quarter.
The BoE expects growth to increase speed to 0.4% in the second quarter - despite the inconclusive outcome of this month's national election - and has said it might start to raise interest rates if it sees stronger exports and investment in the coming months.
Real household disposable income fell by 1.4% in quarterly terms, the third fall in a row and the biggest drop since the first quarter of 2013.
NAMPA/REUTERS