UK and US consumer credit spikes in April

In the United Kingdom, consumer credit rose at a seasonally adjusted annual rate of 4.8% in April, driven by easing lockdown restrictions, historically low interest rates and growing consumer optimism, according to the ABA Banking Journal.

In the United States, total outstanding consumer debt rose by $28.7 billion in April, the largest monthly increase since the post‑pandemic rebound, with credit‑card balances up $12.4 billion. Analysts link the surge to a combination of inflation pressures, a tight labour market, rising wages and recent Federal Reserve rate cuts, while warning that higher borrowing could raise default risk if economic conditions soften.