-BOE: UK Sep house purchase approvals 50,024 vs 47,921 Aug
-BOE: UK Sep net consumer credit stg1.199bn vs -stg0.091mn Aug
London (MNI) – The Bank of England’s September credit and money
data showed a sharp rise in mortgage approvals and a surge in unsecured
borrowing, while M4 broad money growth on the BOE’s favoured measure
remained robust.
The data showed a strong end to the third quarter on the borrowing
front. September mortgage approvals rose to 50,024 from 47,921 in
August, their highest outturn since May and well above analysts’ median
forecast for a 48,500 reading.
A more dramatic rise came in net consumer credit, which increased
stg1.199 billion on the month in September having fallen by stg91
million in August. This was the highest outturn since February 2008.
A Bank of England official said it was possible the data were “a
one-off” but there had been no change in the data population sample that
would explain the effect.
The outturn was much stronger than analysts’ median forecast for a
stg100 million increase.
Credit card borrowing rose, with 0.6% growth on the month to stand
up 1.3% on a 12 month basis.
The long standing picture in the UK has been one of very subdued
demand for, and supply of, unsecured credit in the UK with many months
seeing negligible change or small net repayments, but these data buck
that trend.
The BOE’s favoured M4 measure, M4 ex-IOFCs, which excludes the
economically irrelevant intra-financial sector transactions, rose by
0.3% on the month and was up 7.4% on a three monthly annualised basis,
down from the local peak of 7.9% in August.
-London newsroom: 4420 7862 7491 e-mail: drobinson@marketnews.com
[TOPICS: M$$BE$,MABDS$]
