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Banks extend record consumer credit in UK

Staff Writer |
Mortgage lending increased less than expected in November but consumer credit reached an 11-year high, Bank of England data on UK money and credit figures revealed.

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November mortgage approvals rose to 67,505 from 67,371 in October but this was short of the 68,500 expected by economists.

The M4 measure of money supply growth slowed to 0.4% month-on-month from the 1.1% in October, bringing down the annual growth rate to 6.4%.

M4 lending excluding banks, the Monetary Policy Committee's preferred measure, rose robustly on the month, following a fall in October, with the annual growth rate holding steady at 6.1%.

Annual growth in lending to firms picked up slightly to 2.9% from 2.7%.

Meanwhile, reflecting the strong recent household spending, consumer credit rose by £1.9bn over the month to push the annual growth rate up to 10.8%, exceeding the £1.6bn average of the previous six months which was also the consensus prediction, and the highest level in 11 years.


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