Consumer Borrowing Cools in May

There are signs that the UK economy may be slowing – with a significant slowdown in the growth of personal debt last month

Emma Simon 26 June, 2017 | 12:08PM

Fears of higher inflation and a squeeze on incomes may have put a brake on consumer spending last month, according to the latest figures from the British Bankers’ Association (BBA).

The latest data shows that borrowing on loans, credit cards and overdrafts slowed significantly in May, ahead of the general election. However, the total amount of consumer debt in the UK continues to grow, albeit at a slower rate.

Personal debt grew at an annual pace of 5.1% in May – a sharp decline in the 6.4% growth rate seen in April, according to the BBA. It said this was the weakest borrowing increase since October 2015.

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About Author

Emma Simon

Emma Simon  is a financial journalist, specialising in investment and consumer issues, writing for Morningstar.co.uk

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