Real household PCI declines in OECD in Q2 2022 for third time in a row

Real household PCI fell in most OECD countries for which data is available in Q2 2022, and in all G7 economies except Germany. Real household PCI fell by 1.2 per cent in France, by 1.1 per cent in Canada and the United Kingdom, and by 0.4 per cent in the United States, according to a press release by the OECD. Q2 2022 was the fourth consecutive quarter of falling real income for households in the United Kingdom and the fifth consecutive quarter for households in the United States.

The declines over this longer period reflect both the reduction in pandemic-related government assistance and rising consumer prices faced by households. When compared with Q4 2019, before the start of the pandemic, growth in real GDP per capita for the OECD (2.3 per cent) is now slightly ahead of growth in real household PCI (2.0 per cent).

The growth profiles of the two indicators over time are very different, with real GDP per capita climbing since its trough in Q2 2020 while real household PCI has trended downwards since Q1 2021. The decline in real household PCI during this period has been driven by falls in the United States, the United Kingdom, and Canada.

ALCHEMPro News Desk (NB)