Consumer credit falls

Latest Bank of England data has shown that net borrowing of consumer credit by individuals was £0.9 billion in March, down from £1.3 billion in the previous month. Within this, net borrowing through credit cards decreased to £0.2 billion in March, the lowest since April 2024 (£0.2 billion). Net borrowing through other forms of consumer credit remained unchanged at £0.6 billion in March.

Commenting on the data, Richard Pinch, Senior Risk Director, at Broadstone said “The consumer credit market continues to see considerable headwinds with credit card borrowing at its lowest level in a year as consumer confidence remains shaky.

“The Bank of England shows that effective interest rates across all major credit products continue to fall and further base rate cuts from the Bank of England could accelerate this direction of travel. However, until consumers feel more confident in their personal finances and in the wider health of the UK economy, it seems unlikely that there will be a step change in consumer credit borrowing any time soon.”