Consumer credit shrinks to lowest in a year, mortgages rise though

Bank lending figures from the Bank of England painted a mixed picture for households and businesses, with a further reduction in consumer credit but a

Bank lending figures from the Bank of England painted a mixed picture for households and businesses, with a further reduction in consumer credit but a rise in mortgage approvals and business lending.

Consumer credit growth eased to its lowest rate in a year and its second lowest in three years at 9.8% as the July flow was a little weaker than recent months.

Net consumer credit in July surprisingly fell to £1.2bn from £1.4bn, when an increase to £1.5bn had been forecast.

Mortgage approvals increased to 68,689 from a weaker few months to the levels seen at the beginning of the year, up from 65.3K the previous month and up on the 65.5K consensus expectation.

Lending to non-financial businesses rose to £8.1bn, with loans to large businesses rising but those to small and medium-sized businesses decreasing £0.2bn.

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