UK credit card borrowing soars by most since 2005 as mortgage approvals slide – as it happened | Business

Rising inflation also pushed people to borrow more on credit, with credit card borrowing rising at the fastest rate since 2005.

Pushpin Singh, economist at the CEBR thinktank, explains:

With inflation accelerating rapidly and wage growth unable to match its pace, consumers’ real spending power is weakening.

Moreover, an increase in living costs is likely prompting consumers to turn to borrowing to fund their expenditure, resulting in multi-year high growth rates for credit card borrowing. Meanwhile, net mortgage borrowing saw a stark downtick in April as borrowing costs have risen in recent months

Inflationary pressures continue to build in the eurozone, where consumer prices jumped by 8.1% over the last year – the fastest on record.

Updated growth figures showed that France’s economy shrank in the first quarter of the year, suggesting it could be falling into recession, while Italy managed modest growth.

Switzerland’s economy was supported by decent demand for manufactured goods, while India and Canada both slowed in Q1.

China’s factory slump may have bottomed out in May, as Covid-19 restrictions are eased.

Brent crude oil has hit a new two-month high, over $124 per barrel, after EU leaders agreed a partial ban on Russian imports.

Russia has further cut off gas supplies to Europe, after state energy giant Gazprom turned off the taps to a top Dutch trader, amid an intensification of the economic battle over Moscow’s invasion of Ukraine.

Elsewhere…

Shares in consumer goods maker Unilever have jumped 8.5% after activist investor Nelson Peltz joined its board.

But discount retailer B&M have now sunk 13%, after warning profits could drop as customers struggling with the cost of living crisis opt for cheaper products.

Virgin Atlantic is to allow its cabin crew to display tattoos, the first UK airline – and leading carrier worldwide – to do so.

But chaos continues at UK airports, with TUI cancelling more than 180 flights from Manchester airport until the end of next month.

The UK government has been accused of watering down efforts to combat economic crime after putting forward proposals that could reduce transparency around small company accounts.

And Ofcom is to investigate why Royal Mail has missed its delivery targets: