Mortgage approvals and consumer credit weak
Mortgage approvals ticked up only slightly and consumer credit growth remained weak in May, Bank of England figures showed , highlighting the soft outlook for consumer spending ahead.
The Bank said mortgage approvals numbered 45,940 in May, up from 45,447 in April. Analysts had forecast a reading of 46,100.
The figures are likely to reinforce expectations that house prices will continue to soften this year and heralded further weakness in consumer spending.
Consumer credit nudged up by only £173m, with credit card borrowing rising at its slowest pace since April 2010.
Analysts had predicted a £350m rise in net consumer credit.
Separate figures showed the Bank’s preferred money supply gauge — M4 excluding intermediate other financial corporations — rose by 0.3 percent on the month.