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UK consumer borrowing bounces back in April

The BoE governor, Mark Carney, reported last week the probable risk that British families could “choose to save rather than spend” just when the pressure on real incomes ended.
One of the dilemmas for the Bank of England is whether consumers will begin to spend more money again, adding money into the economy, as inflation eases and wage growth picks up.
These questions come from some data according to which consumer borrowing in the United Kingdom resumed in April, signalling that the economy is recovering some momentum after a sad first quarter.
The latest data from the BoE show that the loan for consumer credit was £ 1.8 billion in April compared to £ 0.4 billion in March. This led to an increase in the 12-month growth rate in consumer credit from 8.6% in the previous month to the current 8.8%.
The data are clear, considering that there have been few changes in the number of mortgage approvals for home purchases or in the number of remortgage approvals.

Article from the ‘Financial Times’

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