The Guardian are reporting that the debt bubble is now approaching levels last seen before the 2008 crash (HERE). This is not government debt but unsecured consumer credit – including credit cards, car loans and payday loans – or private, personal debt owed by millions of people. The Charity StepChange estimates that 2.9 million people in the UK are experiencing severe financial debt in the aftermath of the recession.
Meanwhile Reuters say households are gloomier about the outlook for their finances over the coming year (HERE) and in another report (HERE) say asking prices for houses coming on to the market showed a fall in June, the first since 2009.
This follows a report showing UK retail sales fell more sharply than expected in May with a month on month drop of 1.2% (HERE). House Sales, according to Lloyds, have fallen by nearly a third in some parts of the country (HERE).
All of this is consistent with a slowing domestic economy with inflation at 2.9% easily outstripping wage growth before bonuses of 1.7%. All those who voted to leave in the belief it would put an end to austerity are going to be sadly mistake. The long term future may be bright - who knows? - but many people want changes now and Brexit may not be the panacea they were sold.
