KPMG comments on BoE money and credit data - July 2022

Karim Haji, head of financial services at KPMG UK, said:

“The data does, unfortunately, confirm the darkening picture emerging of the UK economy as both consumers and businesses face challenges on several fronts, but particularly from rising inflation.

“There is no way to dress up the worrying personal finance data. Credit card borrowing and other consumer debt are up again. Lenders offering unsecured debt are caught between the need to be cautious and providing whatever support they can, such as payment holidays or larger overdrafts and credit limits.

“Meanwhile, housing market activity has moderated in recent months, with mortgage approvals returning to their pre-pandemic average of around 65,000. While strong demand for housing continues to boost prices, rapidly falling affordability could be a key driver of a slowdown in the near-term, as higher interest rates are passed on to borrowers.

“One useful temperature check will come in the form of the half-year trading updates from the main UK banks at the end of the month. Their statements will be pored over for evidence of confidence or concern about the state of the economy.”

ENDS.

 

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About KPMG:

KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 15,300 partners and staff.  The UK firm recorded a revenue of £2.43 billion in the year ended 30 September 2021.

KPMG is a global organisation of independent professional services firms providing Audit, Legal, Tax and Advisory services. It operates in 145 countries and territories with more than 236,000 partners and employees working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such. KPMG International Limited is a private English company limited by guarantee. KPMG International Limited and its related entities do not provide services to clients.