British Brexit Economy Sputters as Credit Card Lending Slows in July Amidst Stagnate Workers’ Pay

U.K. consumer credit growth continued its downward spiral in July, dropping to 8.5% year-on-year (YOY), its lowest level this year and well below the peak of 10.8% YOY set in November 2016. For July, driven by the Brexit fallout, the decline was 50 basis points (bps) sequentially, and flat YOY. However, according to the July…

U.S. Card Issuers Left with Bottom Fishing and Rewards Gamers

The number of new credit card accounts (those opened in the previous 24 months) rose to 88.1 million, driven in part by a 16% increase in new subprime accounts. Even with this increase, subprime accounts continue to comprise roughly one-fifth of total open accounts — equivalent to 2012 levels. According to the American Bankers Association’s…

British Consumer Credit Card Debt Continues to Accelerate 9%+ Year-on-Year

U.K. consumer credit continued to expand at a brisk pace in November, topping 10% year-on-year (YOY). In November total consumer credit grew to £192.2 billion. The three-month annualized and twelve-month growth rates, seasonally adjusted (SA), were 11.4% and 10.8% respectively. The Bank of England (BOE) reports consumer credit increased by £1.9 billion in November, in…