UK Consumer Lending Growth Slipped, says BOE

According to reports of the Bank of England, the new credit lines for July reaches £0.817BN, which is lower compared to £1.521BN in June, and the figures came in well below the economist’s forecasts of £1.50BN. While the net lending to individuals declined to £4.0BN last month and lower than £5.4BN in June and analysts prospect of £5.5BN. The data indicate that British consumers mainly rely on low-cost credit lines to sustain the retail economy, becoming to be more discreet.

The stagnant wage growth in the UK hinted at the possible decrease of rates in retail sales as well as economic performance in the following months. In addition to the BOE report, the mortgage approvals in the previous month came in at 64.77K, which is down to 65.00K forecasts and June’s 65.37K. On one hand, the value of new mortgage lending amounted to  £3.20BN for the month of July but down to £2.85BN reported in June and the expected £3.90BN.