The British Bankers’ Association reported that the consumer lending growth rate slowed down to 5.1 percent in annual terms in comparison with a 6.4 percent rise in April.
The slowdown in credit growth increases risks of further weakening in consumer spending amid inflation acceleration.
In May, an advance in credit card borrowing also slowed from 6.4% to 5.5% reflecting lower retail sale volumes.
In the given period, retail sales in the UK dropped by 1.2 percent on a monthly basis. The data by the UK Office for National Statistics showed that the retail sales gained 0.9 percent year-over-year.
According to experts, consumer price growth rates in the country considerably exceed the growth pace of earnings. As a result, the country has witnessed a decline in wages for two months.
In 2016, strong consumer spending greatly supported economic growth in the UK. Lackluster consumer spending data in 2017 could dampen economic situation in the UK in the nearest months.
