Loans drop belies positive trend trend
Tuesday 30 July 1996
Consumer credit rose by just pounds 636m in June, compared with pounds 691m in May and well below economists' forecasts which averaged pounds 785m.
The rise in consumer credit was just 0.9 per cent, compared with the 1.3 per cent leap in the volume of retail sales in June which took the annual increase to 3.3 per cent, and recent strong growth in credit card spending. Mortgage borrowing was also down slightly last month, but ahead of June 1995.
"The figures are a little bit weaker than anticipated, but the underlying trend is still consistent with a steady pace of spending, said Nick Stamenkovic, at DKB International. The figures are expected to encourage optimism in the economy and justify the Chancellor's decision to cut interest rates four times over the past nine months.
In another sign of the feel-good factor making its mark, investors put pounds 722m net into unit trusts during June, up from pounds 616m in May and retail investors alone invested a net pounds 421.3m, two thirds more than in May last year.
On Friday the Halifax is due to publish its monthly house prices index, which should confirm that June's small fall in prices was a glitch, after ten small increases which have sparked market optimism.
Jo from Northern Ireland was less than impressed by Russell Brand's attempt to stage a publicity stunt
- 1 Nigel Farage: Me vs Russell Brand on Question Time – he's got the chest hair but where are his ideas?
- 2 Harry Potter fans can apply to the Hogwarts-inspired College of Wizardry
- 3 Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
- 4 Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
- 5 Orange Wednesdays are no more
Weather bomb in pictures: Storms cuts power for tens of thousands – and snow is on the way
Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
Russell Brand was rendered speechless on Question Time by this man
Fury at Airbus after it hints the super-jumbo may be mothballed
Nigel Farage: Me vs Russell Brand on Question Time – he's got the chest hair but where are his ideas?
Shock poll shows voters believe Ukip is to the left of the Tories
Disgruntled RBS worker writes hilarious open letter to Russell Brand after anti-capitalist publicity stunt leaves him hungry
New era of cheap oil 'will destroy green revolution'
Ukip founder Alan Sked and Nigel Farage 'begged Enoch Powell to stand as a candidate'
Ukip candidate jokes about 'shooting peasants' in racist and homophobic rant
iJobs Money & Business
£40000 - £470000 per annum + bonus: Ashdown Group: Java Developer / J2EE Devel...
£45000 - £55000 per annum + Benefits: Ashdown Group: An exciting opportunity h...
$125 - $175 per annum: Carlton Senior Appointments: Senior Wealth Manager In...
$200 - $350 per annum: Carlton Senior Appointments: Managing Producer Office...