THE latest Asda Income Tracker shows that family spending power in the West Midlands continued to increase year on year in the second quarter of 2014.

When discretionary incomes - the income left once taxes and the spend on essentials like rent, utilities and bills had been deducted - spending power was up £6 a week on the same period a year before.

The boost in discretionary incomes came as welcome news for families who benefited from the positive year-on-year effects of a three per cent fall in the cost of filling up their cars, food prices remaining flat and a 0.3% decrease in their mortgage interest payments.

April's increase in the personal tax allowance also helped to boost the tracker.

The West Midlands outperformed other regions with discretionary incomes rising but was prevented from rising further by three main factors - household utility prices (gas, fuel and electricity) remaining well up on a year ago, an increase in the rate of essential item inflation to 1.6% and slow wage growth.

That increase in inflation was partly down to clothing retailers postponing their summer sales, which typically happen in June.

President and chief executive of Asda, Andy Clarke, said: “This month’s income tracker is a tale of two halves.

"While we are seeing the ninth consecutive month of growth this growth is slowing and over the past month families have not felt the same level of benefit in their household budgets that the positive headlines about economic recovery that we’ve seen in recent weeks would suggest.

“While some regions continue to step on in their economic recovery - such as London and the Midlands - others, such as the South West have actually seen a step back this quarter, indicating that recovery still remains a postcode lottery.

“Although I know that for shoppers a pound a week extra in their pockets will still make a difference, equally, we must recognise that, as a week of sunshine doesn’t make a summer, there will need to be greater, prolonged consistency in our economic indicators before we can claim a full recovery.”

Rob Harbron, senior economist, Cebr, said: “Although London is often cited as the engine of the current UK recovery, the latest Asda Income Tracker regional results highlight how this economic expansion is not yet feeding through into the household finances of many, even for those living in the capital.

“Households around much of the UK are facing the twin squeezes of very weak wage growth and rising inflation.”