The debt threat that never disappeared
Article Abstract:
UK consumer debt has risen by 17.8 billion pounds sterling in the first three quarters of 1996, and the debt to income ratio is at record levels. Debt could exceed bank deposits by 40 billion pounds sterling by year-end 1996. Mortgage debt has risen, and less job insecurity has led to increased demand for goods bought on credit. Low interest rates mean that a lower proportion of income is paid in debt servicing than in 1990 and financial wealth has increased by more than debt due to rises in prices of government bonds and securities. A small rise in interest rates could be have a strong impact on consumer spending.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1996
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UK economy: consumer bet
Article Abstract:
The ruling UK Conservative party expects an increase in consumer spending of 3.5% for 1996. This should help the party's prospects of winning an election. Lower earnings, increased employment insecurity and lower growth of jobs could affect consumer spending, and the labor market is more vulnerable due to flexible labor policies. The government can reduce interest rates in order to boost spending, but may have to reduce rates significantly in order to offset insecurities.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1995
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UK: kicking the habit
Article Abstract:
The UK economy suffers from a high level of consumption, according toHSBC Greenwell. Consumption increased as a proportion of gross domestic product (GDP) morerapidly in the UK than in large economies as a whole. Personal debt levels rose with financialderegulation. Lower direct taxes gave consumers an illusion of wealth, though total tax levelsrose. Consumption looks set to fall as a proportion of GDP to the year 2000, when it could fall tounder 60%.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1995
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