The income available in the United Kingdom has decreased as soon as possible since 2023

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The income available to the family in the United Kingdom decreased as soon as possible since 2023 in the first quarter, while the percentage that people provide for the first time decreased in two years, which could expel one of the main economic goals in the Labor Party.

The National Statistics Office confirmed on Monday that British economy It grew at a rapid rate of 0.7 percent in the first quarter, the fastest since the same period in 2024.

However, detailed numbers showed that high wages were compensated due to the high taxes and jump in inflation.

Real income that can be disposed of to the family-the amount of modified income that was adjusted by inflation available to the family after taxes and subsidies-decreased by 1 percent in the first quarter of the expansion of 1.8 percent in the previous three months, which represents the fastest decrease since the first quarter of 2023.

Last year, Prime Minister Sir Kerr Starmer He said The government will target the available family as a “milestone” to classify the success of its economic policies.

Matt Swaniel, the chief economic advisor at EY ITEM Club.

However, he pointed out that with the provision of families slightly less, “there is space for consumption to be dirty of this slowdown.”

The percentage of available income provided by families, the family saving rate, decreased to 10.9 percent in the first three months, a decrease of 12 percent in the previous three period, which represents the first decrease within two years.

“The savings rate for the first time decreased in two years this quarter, as the costs of elements such as fuel, rent and restaurant have increased spending,” said Liz McChyun, Director of Economic Statistics.

She noted that the percentage is still “relatively strong”, compared to an average of 5.5 percent in the three years to 2019.

“It seems that there is a room for further declines in the future as low interest rates, over time, encourages families to save less. This can be a support for economic activity,” said Sandra Horsfield, economist at Investec.

The formation of growth in the UK has left the economy “seems healthier,” according to Ruth Gregory, Vice President of Economists in Economic Consulting, as expansion was less dependent on trade and net trade, and more on family consumption.

However, growth was pushed in the first three months through the commercial activity that is presented in front of the American definitions, and a one -time jump on spending on aircraft. “These growth sources will not continue,” said Gregory.

Separate monthly numbers, which were published earlier in June, showed that the economy contracted 0.3 percent between March and April. Economists who included opinion by Reuters expect economic growth to slow to only 0.1 percent in the second quarter.

Swaniel said that weakening real income growth, strict financial policy, and high fluctuations in the global trade market affect economic expectations in the United Kingdom.

He said: “After the strong start until 2025, the UK appears to be prepared for another year of weak growth, with the opposite winds continuing to condense.”

Separate data published by the Bank of England on Monday showed that in May, the net borrowing of consumer credit by individuals decreased to 859 million pounds, from 1.9 billion pounds in the previous month, the lowest level since April 2024.

For some economists, this indicates that the decrease in retail sales by 2.7 percent has not been compensated by stronger spending on retail, adding to the signs of faded economic momentum in the second quarter.

However, Bank of England also showed that the approvals of mortgage to buy homes in May increased by between 2,400 to 63,000, the first height since December 2024.