BOE: Consumer credit slowing

Figures released today by the Bank of England show that consumer credit has risen at the slowest annual rate in nearly four years, with weak borrowing

10:47 29 July 2005

Figures released today by the Bank of England show that consumer credit has risen at the slowest annual rate in nearly four years, with weak borrowing to the end of June indicating that consumers are holding back.

Throughout June, consumer credit stood at 1.28 billion, over 1.5 billion less than predicted by experts. In contrast, throughout May, consumer credit stood at 2.02 billion.

Both net credit card lending and net other loans were down from May. With borrowing rising by only 12.5 per cent throughout the year, lending to individuals is at its weakest since August 2001.

Growth in mortgage lending was also down, slowing to 7.53 billion, 10.8 per cent higher on the year. March 2002 was the last time growth was so slow.