Take-home pay falls
Thu 7 Feb 2008
Take-home pay growth has fallen in January according to the VocaLink index. Results from its latest findings revealed the index fell to 2.8 per cent, having reached 3.3 per cent at the end of December. Richard Cooper, head of brand and communications, explained that the slump was felt before the new year when "low take home pay growth and a decline in consumer confidence contributed to poor Christmas trading for retailers". Despite some growth in the manufacturing sub sector, figures for 2007 showed the lowest annual pay growth for two years. "This suggests more poor trading ahead as individuals take-home pay continues to be stretched across mortgages, fuel and other essentials," added Mr Cooper. The financial services and employees are waiting to hear from the Bank of England's monetary policy committee, which will announce its decision on interest rates this week. Most commentators have predicted a quarter per cent cut, which will mean reduced mortgage payments and a lower cost of borrowing.
related articles
