UK DATA: Net consumer credit hit a record low in December and
overseas holding of Gilts plunged, while mortgage approvals picked up,
according to Bank of England data. The BOE figures showed net consumer
credit fell by Stg377 million, the largest monthly fall on record. Broad
money supply data also showed record monthly falls, hit by a sharp fall
in deposits from securities dealers. The data showed increased activity
in the mortgage market, offset by low demand for unsecured credit and
falling money supply. December mortgage approvals rose to 52,939 from
52,628 in November, the highest outturn since December 2009. This was
below analysts’ median forecast for a 54,000 outturn. Net mortgage
lending rose Stg0.74 billion on the month. The broad money data showed
M4 ex-IOFCs, a measure designed to exclude economically irrelevant
intra-financial sector transactions, fell by a record 0.7% on the month
in December, while M4 fell by a record monthly 1.4%.