UK Lending Suggests Potential Christmas Spending Spree

UK Lending Suggests Potential Christmas Spending Spree

Friday 29th November 2019  – 09:40 (GMT)

Figures released by the Bank of England have shown an unexpected increase in net lending and consumer credit over the past month. Net lending to individuals was up £5.6B in October versus £4.6B in September whilst consumer credit increased to £1.3269B up from £0.9B over the same time period.

Analysts suggest that UK consumers are likely gearing up for a bumper spending spree over the all-important Christmas shopping period. This will come as welcome news to the struggling high street retailers who rely on profits over December to help carry them through the first quarter of the year.

Sterling remains range-bound ahead of the December 12th General Election, trading between $.28 – $.12950 versus the dollar and €1.16 – €1.1750 versus the euro. Historically, the pound has tended to soften in the days prior to voting with analysts watching closely as we head into the final full week of campaigning on Monday.