May’s household borrowing figures show that, with households continuing to take on new debt and signs of life in the housing market, a consumer recovery may be taking root. But with real incomes falling, higher borrowing can sustain spending for only so long. Moreover, the pick-up in market interest rates could soon feed into consumer rates, which may snuff out the recent revival in borrowing.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services