November’s money and lending data suggests that consumer caution around borrowing and saving has failed to fade in the wake of the Labour government’s budget, according to Capital Economics.
Its analysts say this adds further downside risk to its Q4 GDP forecast of 0.0%.
The £0.9bn rise in consumer credit in November was a bit lower than October’s rise of £1.0bn and the average gain of £1.2bn over the previous six months.
This suggests households have become a bit less willing to take on more unsecured credit and it chimes with the retail sales figures which indicate households reined in their spending in Q4.
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