UK consumer lending growth slows to weakest since Nov 2015 - BoE

UK consumer lending growth slows to weakest since Nov 2015 - BoE

Reuters  | Aug 30, 2018 09:58

UK consumer lending growth slows to weakest since Nov 2015 - BoE

LONDON (Reuters) - British consumers borrowed at the weakest pace in nearly three years last month, and foreign investors sold a record volume of their holdings of British government debt, Bank of England data showed on Thursday.

Twinned with a small fall in mortgage approvals, the consumer borrowing figures are likely to fuel concerns of a soft economy ahead of Brexit, while the gilt sales may add to worries about the funding of Britain's current account deficit.

Consumer credit growth slowed to an annual rate of 8.5 percent in July from 8.8 percent in June, the slowest growth since November 2015.

In month-on-month terms, net consumer lending rose by 817 million pounds, down from 1.521 billion in June and below all forecasts in a Reuters poll of economists.

Mortgage approvals for house purchase softened to 64,768 from 65,374, slightly below economists' forecasts of a dip to 65,000 in a Reuters poll.

Net gilt sales by foreign investors totalled 17.153 billion pounds, up sharply from 1.362 billion pounds the month before and the highest since records began in July 1982.

July saw Prime Minister Theresa May set out her first detailed proposals for the terms on which Britain will leave the European Union in March next year.

Last week industry body UK Finance reported a fall in the number of approvals for house purchase in July, though gross mortgage lending increased as existing home-owners sought to lock in cheaper interest rates before the BoE raised its main rate in August.

British house price growth has slowed this year, mostly due to falling prices in much of central London, where demand has been hit by higher purchase taxes on expensive homes and reduced foreign investor appetite since 2016's Brexit vote.

© Reuters. People walk past the Bank of England in London

On Wednesday a Reuters poll of housing market analysts showed that on average they saw a three in 10 chance of a significant correction in the British capital's property market before the end of 2019, though their central scenario was for a much smaller fall in prices.

Related News

Latest comments

Add a Comment
Please wait a minute before you try to comment again.
Write a reply...
Please wait a minute before you try to comment again.

Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

English (USA) English (India) English (Canada) English (Australia) English (South Africa) English (Philippines) English (Nigeria) Deutsch Español (España) Español (México) Français Italiano Nederlands Português (Portugal) Polski Português (Brasil) Русский Türkçe ‏العربية‏ Ελληνικά Svenska Suomi עברית 日本語 한국어 简体中文 繁體中文 Bahasa Indonesia Bahasa Melayu ไทย Tiếng Việt हिंदी
Sign out
Are you sure you want to sign out?
Saving Changes


Download the App

Get free real time quotes, charts and alerts on stocks, indices, currencies, commodities and bonds. Get free top of the line technical analysis/predictors. is better on the App!

More content, faster quotes and charts, and a smoother experience is available only on the App.