Later this week the Bank of England is expected to release figures relating to consumer borrowing, credit, and mortgage lending. Many believe that the data in the report will show how lending, consumer credit, and spending has become increasingly subdued. However, it is thought that although some people will find the data in the report worrying many others will be relieved by the slowdown in lending and spending figures.

Over the past decade many people have burdened themselves with a huge amount of personal debt, as finance was easily available to the masses before the financial crisis. Over the past few years, whilst banks have become far more stringent with regards to lending, many people have been spending on their credit cards and overdrafts amongst other things in order to keep their heads above water financially.

However, the spending and lending figures in the report are expected to be weak. For many officials in the city this could represent a worrying time that could have a worrying knock on effect on the economy and on consumer confidence levels. However, some others believe that this is a sign that consumers are now getting over their addiction to debt and borrowing and that people are now more focussed on paying off their existing debt and living within their means than taking on increasing amounts of debt.

Peter Dixon, strategist at Commerzbank, said: ‘Within the context of rebalancing the economy away from personal debt, these low figures may be no bad thing. Those who argue that borrowing should be stronger are missing the bigger picture.’

Ross Walker, economist at Royal Bank of Scotland, said: ‘The British household sector needs to de-leverage. This is happening, but at a snail’s pace. That said, a more rapid correction would probably be associated with recession in consumer and property markets.’