–BOE: UK Oct House Purchase Approvals 47,185 vs 47,369 Sep
–BOE UK Oct House Purchase Approvals Lowest Since Feb 2010
–BOE OCT M4 Ex-IOFCs 1Q Annualised M4 +1.6% 4Qtr 12m Annualised
–BOE OCT M4 Ex-intermediate OFCs +0.1% m/m; +2.9% 3m Annualised
–BOE: UK Oct Net Mortgage Lending stg0.983bn vs stg0.174bn Sep
–BOE: UK Oct Net consumer credit stg287mln vs stg72mln Sep
–OCT UK M4 +0.7% m/m; -0.7% y/y; m4 lending +1.1% m/m;-1.1% y/Y
–OCT UK M4 y/y Lowest on Record

London (MNI) – Mortgage approvals fell in October and broad money
growth hit a record low on the year, according to the latest Bank of
England data.

The data also showed, however, that broad money growth on the BOE’s
favoured measure picked up a little on the three month annualised
measure and net consumer credit nudged higher.

The forward looking mortgage approvals data, a good indicator of
future housing market activity, maintained the downtrend that has been
evident in recent months.

The number of approvals for house purchase fell to 47,185 in
October from 47,369 in September. This was the lowest level recorded
since February this year.

The series peak for mortgage approvals, hit back in November 2003,
was 134,733 and the low 26,616 in November 2008 and the long run average
90,000. Mortgage approvals are now running a little over half their long
run average.

Net secured lending was up stg963 million on the month in October,
compared with stg174 million in September.

Unsecured borrowing also picked up, to stg287 million from stg72
million in September.

The broad money data were mixed, with the basic broad money
measure, M4, hitting an all time low. M4 was up 0.7% on the month but
fell 0.7% on the year, the biggest yearly fall on record.

The BOE places weight on M4 excluding intermediate other financial
corporations, a measure which seeks to exclude economically irrelevant
intra-financial sector transactions.

In October, M4 ex-IOFCs was up 0.1% on the month and up 2.9% on a
three month annualised basis, with the latter above the 2.5% recorded in
Q3. On a four quarter annualised basis it was up 1.6%, down from 2.0% in
Q3.

BOE Governor Mervyn King has talked about the weakness of M4 growth,
although his remark have drawn criticism from some monetarist
economists, as the question of how strong monetary growth is depends
on exactly which measures are being used.

–London newsroom: +44 207 862 7491 email: drobinson@marketnews.com

[TOPICS: M$B$$$,M$$BE$,MABPR$,MT$$$$]