2.1.2 Influences on AD

Consumer credit (excluding student loans) is defined as borrowing by UK individuals to finance current expenditure on goods and/or services excluding loans issued by the Student Loans Company. Consumer credit (excluding student loans) is split into two components; credit card lending and ‘other’ lending (mainly overdrafts and other loans/advances).

In the United Kingdom, the saving ratio estimates the amount of money households have available to save as a percentage of their gross disposable income plus pension accumulations.

In the United Kingdom, because new orders heavily affect business confidence they are a leading indicator for growth in gross domestic product.