Latest gross disposable household income estimates indicate metropolitan West Midlands is UK’s poorest sub-region

Office for National Statistics logoThe 2007 Regional Gross Disposable Household Income (GDHI) (Word, 411KB) estimates are released today by the Office for National Statistics.

Indexed GDHI per head (where UK=100) for the West Midlands in 2007 was 90, stable in comparison to the revised 2006 index value of 90.

GDHI per head in the West Midlands rose from £12,700 in 2006 to £12,900 in 2007, an increase of 1.9%, in line with the increase seen in England and the UK.

Gross Disposable Household Income (GDHI) per head is preferred to Gross Value Added (GVA) per head as a measure of economic welfare.

In the 2007 data, the West Midlands in regards to GDHI per head was ranked seventh amongst the nine English regions, where London is the strongest performer at £17,900 and the North East is the least strong at £12,200.

In total, regional GDHI for the West Midlands region in 2007 was £69.7bn, an increase of £1.5bn on the revised figures for 2006.

The latest NUTS2 data for 2007 shows GDHI per head in Shropshire and Staffordshire grew by 2.4% to £13,300. In Herefordshire, Worcestershire and Warwickshire it grew by 2.2% to £15,000.

The West Midlands (metropolitan) produced growth of 1.4% to £11,700, and with an indexed GDHI per head of 82 (UK=100) was ranked 37th of the 37 NUTS2 areas in the UK, the next lowest being Tees Valley & Durham (indexed GDHI per head of 84).

West Midlands (metropolitan) has seen a steady decline in indexed GDHI per head since the beginning of the data series in 1995, when it stood at 87.

As a proportion of the West Midlands region total GDHI of £69.7bn, West Midlands (metropolitan) contributed 44%, Shropshire and Staffordshire contributed 29%, while Herefordshire, Worcestershire and Warwickshire contributed 27%.

At the NUTS3 geographical level, Solihull was the strongest performer in 2007 with GDHI per head 12% greater than the UK average, followed by Warwickshire (+7%) and Worcestershire (+5%).

Stoke-on-Trent was the least strong with GDHI per head 22% below the UK average. Nevertheless, Stoke-on-Trent recorded the highest annual growth in GDHI per head in the West Midlands region, increasing 2.8% on 2006.

The regional GDHI for the West Midlands and the other regions in today’s data release have been subject to methodological revisions and changes to data-inputs, which has required headline figures for previous years to be revised. As a consequence the GDHI figure for 2006 in the West Midlands has been revised from £67.3 bn to £68.1bn, an increase of £813m, and GDHI per head has also been revised from £12,600 to £12,700.

More details of these revisions (which apply to the whole regional time series from 1995) can be found in the West Midlands regional GDHI briefing (Word, 411KB) from the ONS.

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