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31.05.2017, 08:39

UK money supply and lending mixed in April

Broad money, M4 excluding intermediate other financial corporations, increased by £9.0 billion in April, with positive flows for all sectors. Within this, households' M4 flows, at £4.4 billion, were slightly higher than recent weak outturns whilst private non-financial corporations' (PNFCs') M4 flows strengthened further to £3.8 billion.

Sterling lending to the UK private sector excluding intermediate other financial corporations, M4Lex, increased by £3.9 billion in April. Net lending flows to households and PNFCs were slightly lower than last month at £3.6 billion and £1.0 billion respectively, the former being the lowest since April 2016.

Net lending secured on dwellings in April was £2.7 billion, the lowest since April 2016.

Approvals for house purchase and remortgaging loans fell further in April, to 64,645 and 40,575 respectively.

The flow of consumer credit was similar to its recent average in April, at £1.5 billion; the annual growth rate was broadly unchanged.

Loans to large non-financial businesses increased by £2.1 billion in April, mainly reflecting lending to the public administration and defence sector . Loans to small and medium-sized enterprises decreased by £0.3 billion..

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