Consumer credit annual growth fell back in UK
Consumer credit annual growth fell back in November to around 6% despite strong retail sales. Growth continues to be supported in the case of personal loans by favourable interest rates.
House purchase approval numbers are 9% lower than in November 2015 and in the first eleven months of 2016 were 4% lower than in the same period of 2015.
Remortgaging approvals were 14% higher than those in November 2015 and in the first eleven months of 2016 were 13% higher than in the equivalent period of 2015. Other advances were 10% higher than a year ago.
Borrowing by non-financial companies decreased by £1.2bn in November, as the short-term borrowing taken last month unwound.
Lower demand for finance may reflect companies reducing investment plans and preferring to use internal funds rather than borrowing.
Net capital market issues in the eleven months to November 2016 were £17.3bn (net), compared with bank borrowing of £13.8bn (net) over the same period.
Personal deposits have been growing more strongly in recent months and annual growth was 4.8% in November. In the first eleven months of 2016 personal deposits have grown by £32.4bn compared with £19.8bn in the same period of 2015.
Non-financial companies deposits grew at an average annual rate of over 8% in 2015 but fell back in the first half of 2016 and are currently growing at an annual rate of 4.0%.
In the first eleven months of 2016 non-financial companies deposits have grown by £8.5bn compared with £25.6bn in the same period of 2015. ■