UK Consumer Debt is Slowing Down Says BoE

The rapid growth in borrowing by consumers appears to be slowing amid a squeeze on households, despite remaining at levels unseen since the financial crisis.

The annual rate of growth for consumer borrowing through credit cards, overdrafts and personal loans slowed to 9.8% in July, the lowest rate of expansion since April 2016, according to the Bank of England. The growth rate was a little weaker than in recent months, when the pace of expansion was above 10%.

Spending by British consumers is growing at the weakest rate in almost three years, as households come under pressure to tighten their belts from higher prices fuelled by a drop in the value of the pound since the EU referendum. Wages rose by 2.1% in June, while inflation stood at 2.6% in July, leading to negative earnings growth.

via The Guardian

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