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Chartist's Corner - February 2019

January 31th 2019 – Written by Andrew Chorley

Chartist's Corner

Once a month we will bringing you what we see as an important set of charts and why we are keeping an eye on them!

The UK Household appears to have been enjoying a credit card spree; the Financial Crisis was only a blip in spending as low interest rates and 0% offers continue to encourage consumer spending.

In fact householders are now for the first time since the 80s net borrowers.

All this despite falling disposable income levels over the last 5 years.

The borrowing may well be being funded by savings as the Household Savings Ratio (savings as a percentage of total resources) is at its lowest level since the early 60s.

Why is this important?

  • At some point interest rates will rise and return to normal
  • 0% interest cannot exist for every
  • Rising interest rates would bring rising debt servicing costs/interest payments
  • With less income to make monthly payments and less savings to reduce borrowing households will feel the pinch


EST. 1999