Consumer Payment Card News

U.K. Card Lending Descends in January to a New Low of 6.5% Annually

U.K. card lending gravitates down in early 2029. Based on consumer credit statistics released this morning by the Bank of England (BOE), annual consumer credit growth slowed to a 6.5% annual gain (YOY) in January, compared to 6.6% YOY in December, and 9.4% YOY one-year ago. The monthly flow of consumer credit was marginally higher in January than the recent average says the BOE.

U.K. Card Lending

The extra amount borrowed by consumers to buy goods and services increased to £1.1 billion in January, slightly above the £0.9 billion monthly average since July 2018, but below the £1.5 billion average between January 2016 and June 2018. Within this, credit card lending picked up after a weak December and other loans and advances increased slightly on the month.

U.K. consumer credit card lending settled at £72.3 billion for a 6.7% YOY gain in January, compared to £72.2 billion for a 7.1% YOY in December, and compared to £70.2 billion for an 8.9% YOY for January 2018.

U.K. other consumer loans, advances posted at £144.0 billion for a 6.4% YOY gain in January, compared to £143.5 billion for a 6.3% YOY in December, and compared to £137.2 billion for an 9.3% YOY for January 2018.

Total U.K. consumer credit reports at £216.3 billion for a 6.5% YOY gain in January, compared to £215.7 billion for a 6.6% YOY in December, and compared to £207.5 billion for an 9.3% YOY for January 2018.

U.K. Outlook

Analysis by RAM Research reveals credit card lending growth (seasonally adjusted) has been eroding, from double-digits YOY in January to below 7.0% YOY for the past two months, impacted by Brexit negotiations. However, household savings has been picking up through most of 2018.

The GfK consumer confidence index in the UK held at -14 in January 2019, its lowest since July 2013 and slightly above market expectations of -15, as concerns about Brexit negotiations persist. Households’ assessment of their personal finances improved due to falling inflation and higher wages and employment, while their outlook on the economy over the next 12 months was the weakest since December 2011 (-39 vs -38).

Consumer Confidence in the United Kingdom averaged -9 Index Points from 1981 until 2019, reaching an all time high of 10 Index Points in June of 1987 and a record low of -39 Index Points in July of 2008.

U.S. Revolving Consumer Credit

The year-over-year change in U.S. credit card debt, slowed dramatically in the last three months of 2018, from a revised 11.6% in October, to a revised 5.6% in November and 2.0% in December. The January figures will be available March 7, according to CardData.

U.K. Credit Card Loans

(seasonally adjusted)

Jan 2018: £70.2 billion +9.4%
Feb 2018: £70.8 billion +9.6%
Mar 2018: £70.7 billion +8.9%
Apr 2018: £71.2 billion +8.8%
May 2018: £71.6 billion +9.3%
Jun 2018: £72.0 billion +9.4%
Jul 2018: £72.0 billion +8.9%
Aug 2018: £72.5 billion +8.9%
Sept 2018: £72.3 billion +8.6%
Oct 2018: £72.3 billion +8.3%
Nov 2018: £72.4 billion +7.9%
Dec 2018: £72.2 billion +7.1%
Jan 2019: £72.3 billion +6.7%

Additional & Historical Monthly U.K. Credit Card Loans Data

U.K. Other Loans/Advances


(seasonally adjusted)

Jan 2018: £137.2 billion 9.3%
Feb 2018: £138.5 billion + 9.3%
Mar 2018: £138.7 billion + 9.3%
Apr 2018: £139.6 billion + 8.8%
May 2018: £140.3 billion + 8.5%
Jun 2018: £141.0 billion + 8.5%
Jul 2018: £141.5 billion + 8.2%
Aug 2018: £142.2 billion + 7.7%
Sept 2018: £142.8 billion + 7.5%
Oct 2018: £142.7 billion +7.0%
Nov 2018: £143.1 billion +6.8%
Dec 2018: £143.5 billion +6.3%
Jan 2019: £144.0 billion +6.4%

Additional & Historical Monthly U.K. Other Loans/Advances Data

U.K. Total Consumer Credit

(seasonally adjusted)

Jan 2018: £207.5 billion + 9.3%
Feb 2018: £209.3 billion + 9.4%
Mar 2018: £209.5 billion + 8.6%
Apr 2018: £210.3 billion + 8.8%
May 2018: £211.9 billion + 8.8%
Jun 2018: £213.0 billion + 8.8%
Jul 2018: £213.5 billion + 8.5%
Aug 2018: £214.6 billion + 8.1%
Sept 2018: £215.0 billion + 7.9%
Oct 2018: £215.0 billion +7.4%
Nov 2018: £215.5 billion +7.1%
Dec 2018: £215.7 billion +6.6%
Jan 2019: £216.3 billion +6.5%

Additional & Historical Monthly U.K. Total Consumer Credit Data

Source: Bank of England; RAM Research; CardData

New and Revised figures as of 03/01/19

Note: Lending to individuals is split between lending secured on dwellings (mortgages) and consumer credit. Consumer credit is further split between credit card debt and other loans and advances. Student loans are excluded.