For the five months to June 2008 the annual increase remained at around the 8%, then moved up to a peak of 9.5% before falling sharply from October onwards as repayments exceeded new borrowings. The annual changes have all been negative in the last six months.

After borrowings reached a peak of some £237bn in September 2008, the amounts outstanding have gradually declined. During the early months of the credit recession these unsecured borrowings were used to fund household expenditure including higher mortgage interest rates but the latter have fallen sharply along with the base rate. As a consequence, repayments have exceeded new borrowings in most months out of the last 12. The figures represent the amounts outstanding month by month. With the borrowing on properties being of the order of £1,200bn, the sum of the two still remains at over £1.4 Trillion.

The percentage change in borrowings from one month to the next normally lies within a band of +1% to -1% without any real pattern being evident and a distinct lack of seasonality. The pattern year on year is quite similar other than the sharp fall in 2008 October when a pre-Christmas rise would have been the norm. It was therefore to be expected that there would be increases in November and December since when the changes have hovered around or below the zero mark.

In May 2006, the total outstanding broke through the Trillion Pound barrier in respect of loans secured on residential properties. This landmark was soon left behind and the total has risen by a further 22% in the 27 months since. A new high has been set in each successive month, albeit remaining the same in the last quarter. It would appear that repayments are now matching the low level of new borrowings.

With all of the markers on this chart lying between 1% and 12% the continuous rise in the total amount outstanding over the last two years is clearly apparent. That said, there has been a distinct downward trend in the last 18 months, but the annual rate of growth is currently still at around the 1% level. Undoubtedly this could fall even further in the months ahead. The rolling average mirrors the gradual reduction - now only marginally above the 2% mark.

Although lying in quite a narrow band, the month on month increase has remained positive for the whole of the last two years although temporarily becoming negative in May. Positive changes have again been seen in seven out of the last eight months.

Where there is an excess of Disposable Income over Consumer Expenditure it is interpreted as the total Savings and is measured quarterly. The ratio of the latter to Disposable Income determines the Savings Ratio which falls as Expenditure rises.This was clearly evident throughout 2007 and into 2008 with a dramatic fall in the first quarter when Expenditure was greater than Income by 0.7% - quite unprecedented. Since then, the ration has come back on to track. With expenditure being constrained during successive quarters of the recession, the Savings Ratio has currently reached a higher point than has been seen since 1998 - one of 8.6%.