Friday, 13 May 2016

Eurozone Recovery Picks Up Speed

Statistics show that in the first 3 months of the year the Eurozone's economic growth was at a stronger than expected 0.6%. The 19-nation bloc's growth double from 0.3% in the previous quarter, and was above analysts projections of 0.4%. However, separate data from Eurostat also indicated that deflation had returned to the eurozone.
Inflation in the bloc fell to minus 0.2% in April, down from zero in March. The latest growth figures suggest that the eurozone's economy is now bigger than it was before the start of the financial crisis eight years ago. The eurozone has recently benefited from a fall in oil prices and the euro, particularly in Germany.

Credit Card Borrowing Rises At Fastest Rate In 11 Years, Fuelling Fears Over Household Debt

There were raising fears of a consumer credit bubble after household borrowing on credit cards and loans rose at the fastest pace in 11 years in March. 

This represents the biggest monthly rise since March 2005. The Bank of England said net unsecured consumer credit rose by £1.9bn in March, this followed a £1.4bn increase in February. The monthly rise pushed the annual growth rate up 9.7%, reflecting a decade high. 

Samuel Tombs, chief UK economist at Pantheon Macroeconomics, said there was already evidence that borrowers were overstretching themselves. 

The data also showed mortgage lending surged by the largest amount since before the financial crisis, in what economists said reflected a surge in demand from landlords ahead of this month's stamp duty hike. net mortgage lending rose to £7.4bn in March, up from £3.6bn in February. This was the biggest rise since October 2007.