UK FINANCE PUBLISHES CARD SPENDING UPDATE FOR OCTOBER 2019
UK cardholders spent £51 billion on debit cards in October 2019, up two per cent on the same month the previous year, UK Finance’s latest Card Spending Update has revealed. Meanwhile total spending on credit cards amounted to £16.6 billion, 2.7 per cent less than in the same period a year earlier. The annual growth rate of outstanding balances on credit cards stood at 3.3 per cent in October 2019, continuing the downward trend from its recent peak of 8.3 per cent at the start of 2018.
The figures also reveal that one third (33 per cent) of credit card transactions and almost half (48 per cent) of debit card transactions in the UK were made using contactless cards in October 2019. The total value of contactless transactions was £7.1 billion, an 11.4 per cent increase from £6.4 billion in the same month in 2018.
HOUSING MARKET SEES BOOST IN SALES AND PRICES
House sales rose in December for the first time in seven months, boosted by higher activity in London and the south east, according to figures published by the Royal Institution of Chartered Surveyors (RICS) (BBC News, online only). The monthly survey found an increasingly positive outlook amongst estate agents, driven by greater political certainty since the general election result and low mortgage rates, reports the Financial Times (£, online only). It comes as separate figures from the Office for National Statistics showed house prices grew by 2.2 per cent in the year to November 2019 (The Times, £, p41).
Meanwhile, inflation dropped to 1.3 per cent in December, its lowest level in over three years, increasing speculation that the Bank of England could cut interest rates (Guardian, p39). Michael Saunders, a member of the Bank of England’s Monetary Policy Committee, said UK economic growth is likely to remain sluggish over the next year and that if a rate cut is needed “it should be done promptly” (Financial Times, £).
NEWS IN BRIEF
The Financial Conduct Authority and the Bank of England have urged banks and insurers to accelerate plans to transition away from LIBOR, in a set of documents published today setting out the next steps to be taken (Reuters).
Bloomberg reports that the EU is due to consider around 40 equivalence decisions over the coming months that will determine future market access for UK financial services providers. Conor Lawlor, Director of Brexit at UK Finance, comments: “Both sides should consider how they can build upon current equivalence frameworks to establish a long-term mechanism for cross-border trade in financial services.”
The decade-long productivity crisis may have been caused in part by labour market rules that make it too easy for bosses to hire and fire staff, the Bank of England’s chief economist Andy Haldane has said (The Times, £, p36).
The World Economic Forum’s annual risks report has listed climate change as one of the top five issues of concern for the global economy (Guardian, online only).
The US and China have signed an agreement aimed at easing a trade war that has weighed down on the global economy (BBC News).
WHAT THE COMMENTATORS SAY
Writing in the Telegraph, business commentator Josie Cox argues that BlackRock’s commitment to sustainability earlier this week is a tipping point for green finance. She suggests the move shows how investors are recognising the systemic risk posed by climate change to the global financial ecosystem and how it could outweigh the impact of previous financial crises. Ms Cox concludes that Blackrock’s clout means this is likely to encourage a broader shift as other investors of all sizes follow suit.
LATEST BLOGS
Kelly York from The Curve Group blogs for us today discussing the IR35 reforms and who will be impacted.
LATEST VIDEOS
Nick West, Principal, Head of Learning Innovation and Delivery, UK Finance, talks about some of the courses available to book now from our 2020 training schedule.
