The growth in real wages between May and July fell at almost the fastest rate since comparable records began in 2001, heightening concerns that a fall in consumer spending power will push the UK economy into a downturn.
Employees’ pay, including bonuses, rose by 5.5 per cent in the three months to July to £613 a week, according to figures published by the Office for National Statistics. Pay excluding bonuses rose by 5.2 per cent to £571.
After adjusting for inflation, which averaged 9.5 per cent over the period, total pay fell in real terms by 2.6 per cent. The decline is more severe when excluding the impact of bonuses, with real pay falling by 2.8 per cent over the year.
The gap between
