UK Finance: Country Economy Looks Bleak and Sluggish

Official UK economy figures show that mortgage lending industry rose by close to a tenth in January. However, business investment borrowing decreased due to the insecurity of the Brexit. According to officials, the UK economy looks rather bleak and sluggish.

Data from the UK finance showed there was a 9.7 percent rise in total mortgage lending, hitting £21.9 billion in January. It’s thought that the rise is due to the stamp duty cut while the bounce-back is the result of low levels. The levels are still the lowest they’ve been since September 2016.

Business lending dropped 1.4 percent with the fall on construction. Credit card spending increased by 5.8 percent than personal income growth. According to banks, there is a high repayment level for credit cards.

The figures also show borrowers are turning away from personal loans, choosing to borrow the money through their credit cards. Although there is some concern about household debt, credit card companies are offering deals of interest-free debt for more than three years.

There was a two percent increase in bank deposits and building societies, reaching £835 billion.

According to UK Finance, the overall figures may mean the UK economy is weak. Although there has been an increase in consumer confidence and the wage growth has improved, the overall picture is still rather bleak.

The agency said households will still feel the pinch on their wallets, which means their tendency to spend is likely to drop. Household savings are also dropping, but the costs of debt servicing are increasing.