May’s household borrowing figures show that, with households continuing to take on new debt and signs of life in the housing market, a consumer recovery may be taking root. But with real incomes falling, higher borrowing can sustain spending for only so long. Moreover, the pick-up in market interest rates could soon feed into consumer rates, which may snuff out the recent revival in borrowing.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.