20 September 2006
Consumers' borrowing levels were down in August, according to new industry comment.
Global Insight has commented on the unsecured lending figures in August and described the figures as "muted".
Howard Archer, Global Insight chief UK and UK European economist, said: "Unsecured consumer borrowing was muted in August, with credit card borrowing declining again."
He added that many consumers are now looking for less expensive ways of financing their spending.
Mr Archer argued: "Elevated debt levels, higher interest rates, rising unemployment and increasing pension concerns means that there is an increased need for many consumers to try and improve their finances.
"This need will be highlighted if the Bank of England raises interest rates again before the end of the year."
According to Global Insight, the pressure on many household finances serves to reinforce the belief that consumer spending will moderate in the coming months.
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