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9% Increase in households’ average disposable wealth

UK households’ average disposable wealth has risen by 9 per cent since last year, according to marketing database specialist KDB.

The firm says the average disposable wealth was 38,909 in September compared with 35,824 in September 2004.

KDB defines disposable wealth as liquid assets which consumers can readily call on. There are three components among the data – household equity that can be genuinely released, stocks and shares that are not part of a formal pension plan and cash savings.

Chief analyst Shane Bay- lis says that it is important for business to understand these trends because if disp- osable wealth is in decline, it is a good forward indicator sof recession.

Baylis says: “Consumer spen-ding growth levels and disposable wealth growth levels should not be confused or conflated. This analysis shows that disposable wealth has continued to grow in most parts of the UK.

“However, consumers may not be choosing to spend that wealth – a matter of concern for marketers and business managers alike – but it is more a matter of spending confidence than lack of available assets for the consumers.”

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