–BOE: Aug M4 Ex-Intermediate OFCs +0.8% m/m; +1.6% y/y
–BOE: UK Aug House Purchase Approvals 47,372 vs 48,346 Jul
–BOE: Aug M4 Ex-IOFCs y/y Growth Highest Since Q3 2009
–BOE: UK Aug M4 Ex-IOFCs Lending +0.3% m/m; +0.3% y/y
–BOE: UK Aug Net Mortgage Lending stg1657mn vs stg18mn Jul
–BOE: UK Aug Net Consumer Credit -stg120mln vs stg160mln Jul
–BOE: UK Aug Net Consumer Credit lowest since Nov 2009

London (MNI) – Mortgage approvals fell in August and net consumer
credit hit its lowest level since November 2009, according to the latest
Bank of England data.

The data also showed that broad money growth on the BOE’s favoured
measure picked slowed on the three month annualised measure, but net
mortgage lending rose sharply from its July low.

The forward looking mortgage approvals data, a good indicator of
future housing market activity, continued their steady downtrend.

The number of approvals for house purchase fell to 47,372 in August
from 48,346 in July and 48,409 in June. Approvals have been running at
around half their long run average of 90,455.

The series peak for mortgage approvals, back in November 2003, was
134,733 and the low 26,616 in November 2008.

Net secured lending was up stg1.657 billion on the month in August,
having risen just stg18 million in July. This was its highest outturn
since February.

Unsecured borrowing, however, was far weaker. There was a net
reduction in August of stg120 million in consumer credit, the weakest
outturn since November 2009. At the height of the credit boom back in
2006 the record net consumer credit change on the month was stg10.449
billion.

The broad money data were mixed.

M4 excluding intermediate other financial corporations, a broad
money measure which seeks to exclude economically irrelevant
intra-financial sector transactions, was up 0.8% on the month and up
1.6% on the year, the highest yearly outturn since the third quarter of
2009.

The 3 month annualised rate, however, slowed to 4.5% from 5.1% in
July.

M4 growth fell 0.1% on the month to stand up 1.9% on the year, the
lowest yearly growth on record.

–London newsroom: +44 207 862 7491 email: drobinson@marketnews.com

[TOPICS: M$B$$$,M$$BE$,MABPR$,MT$$$$]