Rising Stress Levels in UK Households

Over 60% of the increase in GDP since 2010 has been driven by household expenditure. While nominal household consumption has increased by 25% since 2010, gross disposable income is up just 19%, with the financing gap bridged with unsecured leverage and a drawdown in...

UK Gilts Overvalued

UK gilts are overvalued, currently yielding only 1%. The UK has seen a boom in consumer credit in recent years, with rates around 10% YoY in the main categories of consumer lending (top chart). Rising inflation has pinched wages, with the result real wages are now...

Credit in UK Booming Again; Wage Growth Has Lagged

There are continuing signs the UK’s economy is increasingly resembling itself prior to the financial crisis.  House-price growth has cooled of late, but is still growing at 4.6% YoY, down from almost 12% last summer.  Consumer credit is also growing at a healthy clip,...