Latest credit data released by the Bank of England - 29 October 2018
- Prior 66.4k; revised to 66.1k
- Net consumer credit £0.8 bn vs £1.2 bn expected
- Prior £1.1 bn; revised to £1.2 bn
- Net lending secured on dwellings £3.9 bn vs £2.9 bn expected
- Prior £2.9 bn; revised to £3.1 bn
- M4 money supply -0.3% vs +0.2% m/m prior
- M4 money supply +0.9% vs +1.2% y/y prior
- M4 ex IOFCs annualised +1.1% vs +0.9% prior
Looking at September's consumer credit growth, it comes in at +5.5% 3m/3m annualised and that's the lowest since January 2014 falling from +6.9% 3m/3m annualised from August. BOE says that is attributed to a sharp fall in car finance due to very weak car sales during the month.
Once again, weaker consumer credit growth isn't too suggestive of an economy that is running hot and will only serve to pose more questions than answers about the underlying strength of the domestic economy.
Cable holds a little lower at 1.2819, not much changed from the data. GBP/JPY slightly higher on the day now at 143.75 as the yen slips a little on the session. EUR/GBP dragged lower as the euro struggles, now at 0.8878.
