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British household income set to rise in 2013: think-tank
Last Updated(Beijing Time):2012-09-18 00:25

Real disposable incomes in British households are set to rise in 2013, according to the latest report on consumer prospects issued by a leading economic forecaster on Monday.

The London-based Center for Economics and Business Research (CEBR) forecast real disposable incomes of British households would fall by 0.2 percent over 2012, because of slow wage growth and stubbornly high inflation, but will rise in 2013.

CEBR predicted Britain's economy will soon exit double-dip recession, posting modest growth of 0.5 percent next year. As the economy gradually revives in 2013, so will real disposable incomes.

The think-tank said incomes are forecast to rise by 0.7 percent for richer household, by 1 percent for middle-income households, and by 1.5 percent for poorer households.

"Similar rises are expected for 2014 and 2015. All types of households will see incomes rise, but poorer ones will see more of a gain," CEBR said.

CEBR said improvements in real income levels would have a knock effect for struggling retailers. It predicted retail sales volumes to rise by 2.5 percent over the next 12 months.

"After four barren years, there is finally a glimmer of light at the end of the tunnel for retailers," said CEBR economist Daniel Solomon.

"Conditions will still be tough, just slightly easier than before," he said, adding that rises in poorer household's incomes would be driven by growth in inflation-linked benefits payments and minimum wages set by the Low Pay Commission.

"On the other hand, richer households will see wages rise more slowly than inflation and don't have a committee to set them," he stated.

British retailers have struggled during the economic downturn, which is officially back in recession after contracting for the past three quarters.

Source:Xinhua 
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