{"id":3164,"date":"2011-04-04T14:37:24","date_gmt":"2011-04-04T14:37:24","guid":{"rendered":"https:\/\/mmm.9dotdigital.ca\/?p=3164"},"modified":"2025-03-27T15:49:12","modified_gmt":"2025-03-27T15:49:12","slug":"uk-consumer-spending-supported-by-rising-real-wealth","status":"publish","type":"post","link":"https:\/\/mmm.9dotdigital.ca\/?p=3164","title":{"rendered":"UK consumer spending supported by rising real wealth"},"content":{"rendered":"<p>Household real disposable income fell by 0.8% in 2010 but real wealth gained an estimated 2% to stand only 6% below its 2007 high. A rising wealth to income ratio should maintain downward pressure on the saving ratio, supporting consumer spending.<\/p>\n<p>Household net financial wealth &ndash; the market value of financial assets minus debt &ndash; grew by 10.1% between end-2009 and end-2010, according to National Statistics figures published last week. This reflected a capital gain on equities and corporate bonds held within life assurance and pension schemes, supplemented by additional saving.<\/p>\n<p>Total wealth includes housing. Official 2010 figures on housing wealth have yet to be released but the Department of Communities and Local Government house price index &ndash; a key input &ndash; rose by 3.7% in the year to December. Assuming the same increase in the value of the housing stock, total wealth grew by 6% or a real 2%. <\/p>\n<p>This 2% rise follows a 9% gain during 2009, implying that real wealth has retraced two-thirds of its 15% decline during 2008 &ndash; see first chart. The ratio of wealth to annual disposable income was an estimated 7.0 at the end of 2010, a level bettered in only two previous years (i.e. 2006 and 2007). The wealth to income ratio is inversely correlated with the saving ratio so the rebound supports expectations that a further fall in the latter will insulate consumer spending from income weakness this year &ndash; second chart.\ufeff<\/p>\n<p><span class=\"full-image-block ssNonEditable\"><span><img decoding=\"async\" style=\"width: 680px;\" src=\"\/storage\/chart1_04-04-2011.gif?__SQUARESPACE_CACHEVERSION=1301929155534\" alt=\"\" \/><\/span><\/span><\/p>\n<p><span class=\"full-image-block ssNonEditable\"><span><img decoding=\"async\" style=\"width: 680px;\" src=\"\/storage\/chart2_04-04-2011.gif?__SQUARESPACE_CACHEVERSION=1301929172405\" alt=\"\" \/><\/span><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Household real disposable income fell by 0.8% in 2010 but real wealth gained an estimated 2% to stand only 6% below its 2007 high. A rising wealth to income ratio should maintain downward pressure on the saving ratio, supporting consumer spending. Household net financial wealth &ndash; the market value of financial assets minus debt &ndash; [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-3164","post","type-post","status-publish","format-standard","hentry","category-money-moves-markets"],"_links":{"self":[{"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=\/wp\/v2\/posts\/3164","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=3164"}],"version-history":[{"count":1,"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=\/wp\/v2\/posts\/3164\/revisions"}],"predecessor-version":[{"id":5473,"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=\/wp\/v2\/posts\/3164\/revisions\/5473"}],"wp:attachment":[{"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3164"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3164"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3164"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}