UK consumer credit borrowing at highest since 2017

UK consumer credit borrowing rose to its highest levels in nearly seven years in November as consumers took on more credit card debt ahead of the festive season in the midst of a cost-of-living crisis.

Net consumer credit borrowing rose to £2.0bn in November, up from £1.4bn in October and its highest level since March 2017, according to data out on Thursday from the Bank of England.

The consensus forecast was for borrowing to be broadly unchanged month-on-month.

The increase was mainly driven by increased net borrowing through credit cards, which doubled to £1bn in November, while net borrowing through other forms of consumer credit (such as car dealership finance and personal loans) rose by £0.1bn.

The annual growth rate for all consumer credit rose to 8.6%, its highest since September 2018.