Concerns grow over UK economy despite boosted holiday spending

Global Business

In Britain, credit card debt is running at record levels, as the U.K. puts post-Brexit worries on hold and gears up for bumper holiday season spending.

Growth in combined household debt, a mix of credit cards and secured loans, are together climbing back to levels not seen since the financial crash, according to the Bank of England.

CCTV’s Richard Bestic reports.
Follow Richard Bestic on Twitter @bestic_richard

Concerns grow over UK economy despite boosted holiday spending

In Britain, credit card debt is running at record levels, as the U.K. puts post-Brexit worries on hold and gears up for bumper holiday season spending.Growth in combined household debt, a mix of credit cards and secured loans, are together climbing back to levels not seen since the financial crash, according to the Bank of England.CCTV’s Richard Bestic reports.

In Britain, they’re tuning up for the holiday season and what is the biggest retail time of the year.

For some, however, it’s beginning to jingle alarm bells.

Bank of England Governor Mark Carney voiced concern in the Bank’s Stability Report, showing UK personal spending has topped 133 percent of income.

Britain has been on a borrowing binge with rising wage levels and low inflation. Dangerous for individuals and the wider economy, should interest rates rise.

The Bank of England said British households have racked up more than $85 billion of credit card debt, while overall debt is climbing back to pre-crash levels.

Britain’s housing market is also highly uncertain, according to the Bank of England. House prices now on average are four-and-a-half times those of average incomes.

A healthy consumer confidence is reflected in the numbers, according to some economists.

However, the general outlook for U.K. financial stability post-Brexit remains challenging,’ according to the Bank of England.


Rob Allard on British economy after Brexit

How has Britain performed economically so far after the Brexit? To learn more about the impact, CCTV America’s Rachelle Akuffo spoke with Rob Allard, CEO of Firebreak Capital.