Latest figures from the major British banking groups for January 2007 revealed that total sterling lending to the UK private sector showed a net underlying increase of GBP21.9 billion to GBP1,290 billion. This was the strongest monthly rise in lending for nine months and compares with an underlying rise of GBP5.3 billion in December 2006.
Net mortgage lending rose by an underlying GBP5.6 billion. Unsecured personal lending was unchanged in January, compared with a rise of GBP0.1 billion in the recent monthly average. Loans and overdrafts rose by GBP0.5 billion, while credit card borrowing fell by GBP0.5 billion.
Furthermore, lending to real estate companies increased while lending to manufacturers, wholesale and retail trade and construction saw a decrease.
As in the second half of last year, card borrowing is contracting and, with weaker retail sales being reported, this reflects the consumer’s current attitude to spending and their commitments, said David Dooks, BBA director of statistics.
