British consumers spent more on their credit cards in August as they borrowed to fund a summer shopping spree but companies are more nervous in the run-up to Brexit, lending industry data showed.
Credit card lending by the main high street banks rose by an annual 5.8 percent, the strongest growth rate since February, UK Finance, a group representing banks and lenders, said.
“Growth in card spending remained fairly strong, reflecting the boost to retail sales from the warm weather as well as the growing use of credit cards as a preferred means of payment,” Peter Tyler, a director at UK Finance, said.
“However, the overall economic outlook remains mixed as household incomes continue to be squeezed by rising inflation.”
British households remain under pressure from inflation that has been rising faster than their pay for much of the past decade. But they have shown little sign of slowing their spending as Brexit approaches.