Clifford Beaumont - UK mortgage approvals increase while business investment remains unchanged.
TAIPEI, TAIWAN, February 27, 2018 /24-7PressRelease/ -- Analysts at Clifford Beaumont say the number of home loans approved by UK banks increased in January for the first time in 4 months. However, consumer lending decreased, indicating that households remain cautious in the current economic climate.
UK Finance, a mortgage industry association, reported that the number of approved home loans increased from 36,085 to 40,117 in December last year. Consumer credit dropped by 0.2 percent on a yearly basis last month and Clifford Beaumont analysts say this is the first decline reported by UK Finance since April 2017.
UK domestic spending has been badly damaged by elevated inflation since the Brexit referendum in June 2016 caused the pound to devalue and consequently driving up the cost of goods and raw materials that the country imports including oil.
Credit card lending came to only 4 million pounds in January and was down from 86 million pounds in the previous month and the slowest growth in 20 months.
Analysts at Clifford Beaumont say that there was a higher level of repayment on credit cards last month and that this is normal for this time of year as consumers pay off holiday season debt.
According to the data released by UK Finance, investments were largely unchanged as many UK firms harbor concerns over political uncertainty and the potential impact of Brexit on trading.
Last week, official data indicated that corporate investment was stagnant in the final quarter of last year. Many companies have stated that they are hesitant to invest before they receive clarity on the outcome of Britain's plan to leave the European Union. Britain will depart from depart the EU in March next year.
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