KPMG comments on BoE money and credit data - November 2022

“There is ample evidence of a slowing economy, from the various GDP forecasts to this data showing that cautious consumers are saving more to build up a buffer ahead of anticipated tougher times. People are also redirecting more of their disposable income to work costs, like transport, and essentials, like food, and they appear to be being cautious when it comes to discretionary and big-ticket spend.

“There are also now a range of indicators laying bare the cooling of the previously buoyant housing market, including this fresh Bank of England data showing approvals for house purchases in October fell compared to September’s total. It’s not hugely surprising, being a combination of the higher rates attached to products on the market, which have made them less affordable for many, and caution among consumers about taking on large new financial commitments in such a gloomy environment.

“More than ever banks are needing to show that they are doing what they can to protect vulnerable customers in a cost-of-living crisis.”

ENDS

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