§ Mr. Austin MitchellTo ask the Chancellor of the Exchequer what is the annual rate of increase in consumers' real expenditure and real disposable incomes(a) since 1979 and (b) between 1964 and 1973; and if he will account for the difference.
§ Mr. NelsonThe annual rate of increase between 1979 and 1993 as 2.6 per cent. in consumers' expenditure and 2.7 per cent. in personal disposable income, both measured at constant—1990—prices. Between 1964 and 1973 the rates of growth were 3.0 per cent. and 3.2 per cent. respectively.
A large number of factors, both domestic and international, influence the growth of consumption and real personal disposable income. There is no simple explanation that can account for developments in these variables over such a long period of economic history.
The residual difference between personal disposable income and consumers' expenditure constitutes saving. Saving at constant prices is not published, but the principle is the same and the difference between real personal disposable income and real consumers' expenditure may be regarded as "real" saving.
The proportions of disposable income devoted to expenditure and saving vary constantly.