Economic Buzz: UK Consumer Credit Increased In July

30 Aug 2022 , 04:12 PM

UK consumers borrowed an additional ?1.4 billion in consumer credit, on net, in July of which ?0.7 billion was new lending on credit cards, according to a report released by Bank of England. Small and medium sized businesses repaid ?0.3 billion of loans in July. This is less than the ?1.4 billion repaid in June, and the 16th consecutive month of net repayments. Large non-financial businesses repaid ?1.8 billion of bank loans in July, compared to ?4.1billion of borrowing in June. Private non-financial companies (PNFCs) redeemed ?3.2 billion in net finance from capital markets. Within this there were, on net, equity buybacks of ?1.9 billion, commercial paper redemptions of ?0.8 billion and bond redemptions of ?0.6 billion. The net flow of sterling money (known as M4ex) increased to ?16.8 billion in July, compared with -?6.0 billion in June. Households holdings of money saw net flows of ?4.3 billion in July, compared with ?2.6 billion in June. Flows into Households time deposits increased to ?2.8bn in July, compared to ?2.0 billion in June and the highest since November 2010 (?3.1bn), whilst interest bearing sight deposits remained weak at ?0.7 billion. The net flow of sterling lending to private sector companies and households (known as M4Lex) increased to ?10.5 billion in July, compared to -?3.0 billion in June.Powered by Commodity Insights