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UK mortgage approvals steady, consumers pay down credit
inspector_monkfish
Posts: 9,276 Forumite
09:30 29Sep09 UK mortgage approvals steady, consumers pay down credit
LONDON, Sept 29 - British mortgage approvals for house purchase held broadly steady in August, Bank of England figures showed on Tuesday, while consumers paid down unsecured debt at the fastest rate since records began in 1993.
Mortgage approvals, a lead indicator of housing demand, slipped fractionally to 52,317 last month, broadly in line with expectations, from an upwardly revised 52,404 in July.
Mortgage lending came in slightly stronger than expected at 1.009 billion pounds, its highest since February, against a contraction of 203 million pounds in July.
However, consumer credit contracted by 309 million pounds, the biggest decline since the series began in April 1993.
Separate figures showed the M4 measure of money supply grew just 0.1 percent in August while the BoE's preferred money supply gauge -- M4 excluding intermediate other financial corporations -- rose by 0.2 percent.
Overall, the figures provide little conclusive evidence that the money being pumped into the economy via quantitative easing is significantly easing credit conditions for households and businesses.
The Bank of England expanded its quantitative easing scheme by 50 billion pounds to 175 billion pounds last month and is meeting with City economists on Tuesday to discuss the progress of the programme.
LONDON, Sept 29 - British mortgage approvals for house purchase held broadly steady in August, Bank of England figures showed on Tuesday, while consumers paid down unsecured debt at the fastest rate since records began in 1993.
Mortgage approvals, a lead indicator of housing demand, slipped fractionally to 52,317 last month, broadly in line with expectations, from an upwardly revised 52,404 in July.
Mortgage lending came in slightly stronger than expected at 1.009 billion pounds, its highest since February, against a contraction of 203 million pounds in July.
However, consumer credit contracted by 309 million pounds, the biggest decline since the series began in April 1993.
Separate figures showed the M4 measure of money supply grew just 0.1 percent in August while the BoE's preferred money supply gauge -- M4 excluding intermediate other financial corporations -- rose by 0.2 percent.
Overall, the figures provide little conclusive evidence that the money being pumped into the economy via quantitative easing is significantly easing credit conditions for households and businesses.
The Bank of England expanded its quantitative easing scheme by 50 billion pounds to 175 billion pounds last month and is meeting with City economists on Tuesday to discuss the progress of the programme.
Please take the time to have a look around my Daughter's website www.daisypalmertrust.co.uk
(MSE Andrea says ok!)
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Comments
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inspector_monkfish wrote: »09:30 29Sep09 UK mortgage approvals steady, consumers pay down credit
LONDON, Sept 29 - British mortgage approvals for house purchase held broadly steady in August, Bank of England figures showed on Tuesday, while consumers paid down unsecured debt at the fastest rate since records began in 1993.
Mortgage approvals, a lead indicator of housing demand, slipped fractionally to 52,317 last month, broadly in line with expectations, from an upwardly revised 52,404 in July.
Mortgage lending came in slightly stronger than expected at 1.009 billion pounds, its highest since February, against a contraction of 203 million pounds in July.
However, consumer credit contracted by 309 million pounds, the biggest decline since the series began in April 1993.
Separate figures showed the M4 measure of money supply grew just 0.1 percent in August while the BoE's preferred money supply gauge -- M4 excluding intermediate other financial corporations -- rose by 0.2 percent.
Overall, the figures provide little conclusive evidence that the money being pumped into the economy via quantitative easing is significantly easing credit conditions for households and businesses.
The Bank of England expanded its quantitative easing scheme by 50 billion pounds to 175 billion pounds last month and is meeting with City economists on Tuesday to discuss the progress of the programme.
Hmm M4 up by 0.2% with base rates at 0.5% and the Government having printed £175,000,000,000 and just about every Government in the world following very similar policies.
I know we have been seeing a few positive signs but when I look at the fundamental nuts and bolts of the economy, I just don't see a happy ending.0 -
Hmm M4 up by 0.2% with base rates at 0.5% and the Government having printed £175,000,000,000 and just about every Government in the world following very similar policies.
I know we have been seeing a few positive signs but when I look at the fundamental nuts and bolts of the economy, I just don't see a happy ending.
What do you see? Inflation?:wall:
What we've got here is....... failure to communicate.
Some men you just can't reach.
:wall:0 -
I just see lots of figures......begger, something else I need to learn about and this week is already so busy.:DWe made it! All three boys have graduated, it's been hard work but it shows there is a possibility of a chance of normal (ish) life after a diagnosis (or two) of ASD. It's not been the easiest route but I am so glad I ignored everything and everyone and did my own therapies with them.
Eldests' EDS diagnosis 4.5.10, mine 13.1.11 eekk - now having fun and games as a wheelchair user.0 -
I see the economy rebalancing to quickly, not what the doctor ordered.'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0
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IveSeenTheLight wrote: »What do you see? Inflation?
Deflation at the moment, in the UK at least, is still very much on the cards due to the M4 growth figure being so low. However, M0 (notes and coins plus bank reserves) is increasing at hundreds of % each month which shows a possibility of high inflation down the line.
Something's got to give and I suspect it won't be nice when it does. It may of course be possible for the Bank of England to 'finesse' this. It'll be amazing if they do.
Of course it is always possible for a Government to create inflation at will if they print enough cash. Whether it's possible to do that and run a budget deficit financed by borrowing is doubtful however as at some point, investors will stop buying fixed interest securities, including Government debt.0 -
IveSeenTheLight wrote: »What do you see? Inflation?
Over-capacity in plant, labour (unemployment) and commercial buildings doesn't shout inflation to me.
You would have to guess that without QE that we would be sufferring deflation.
No appetite to lend from the banks & not much appetite to borrow and invest from businesses (although many are struggling with working capital).
Just read a great book by Francis Wheen on the 1970's called "Strange Days Indeed".
Throw in an escalation of industrial disputes, severe spending cuts to go with the paranoia that the internet feeds and we are almost there!US housing: it's not a bubble
Moneyweek, December 20050 -
The fall in unsecured lending is more than likely the result of tightening up of credit card borrowing. At least a small step in the right direction.0
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Thrugelmir wrote: »The fall in unsecured lending is more than likely the result of tightening up of credit card borrowing. At least a small step in the right direction.
Possibly, except that credit card lending increased slightly, which was more than offset by reduction in unsecured loans.
I think consumers just aren't that keen to take any more debt on.
My bet is that it will keep on trending down for at least 18 months.
It will be interesting to see the MEW (or payback) figures for Q2 which are released next week.US housing: it's not a bubble
Moneyweek, December 20050 -
kennyboy66 wrote: »Possibly, except that credit card lending increased slightly, which was more than offset by reduction in unsecured loans.
I think consumers just aren't that keen to take any more debt on.
My bet is that it will keep on trending down for at least 18 months.
It will be interesting to see the MEW (or payback) figures for Q2 which are released next week.
Have the BOE published their figures?0 -
Thrugelmir wrote: »Have the BOE published their figures?
Not yet from what I can see.
They tend to be a little slow apart from the monetary policy announcement IME.0
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