New credit card spending falls in January
26 February 2010 10:24:59
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| Consumers focus on debt reduction. |
Research conducted by the British Bankers' Association (BBA) found seasonally-adjusted new credit card spending was 3.7% lower in January 2010 than it was during the same month in 2009.
Meanwhile, total consumer credit contracted by 1.8% over the year-long period.
According to BBA statistics director David Dooks, weaker demand for consumer credit is no surprise given the poor weather and consumer determination to restrict outgoings in the face of economic adversity.
This view has been backed up by IHS Global Insight chief UK economist Howard Archer, who told the Guardian: "There can be little doubt that the ongoing net repayment in consumer credit in January was primarily the ongoing consequence of many consumers' desire to reduce their debt in the face of a still very worrying economic environment, low consumer appetite for new borrowing and a lack of availability of unsecured credit from banks."
Consumer efforts to reduce their debts were helped by an increased propensity to save, with personal deposits in January up 4.7% on those seen a year earlier.
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