Consumer credit growth drops to its weakest level in more than 2 years

6th January 2025

Consumer credit grew by £0.9 billion in November, down from £2.3 billion in November 2023, according to latest Bank of England data.

The figures show that consumer credit growth dropped to its weakest level in more than two years.

The data also showed that mortgage approvals fell in November. However the figures still remain above the six month average at 65,720. Similarly, approvals for remortgaging decreased to 31,200.

Net borrowing of mortgage debt by individuals fell by £1.0 billion, to £2.5 billion in November.

Elias Hilmer, Economist from consultancy Capital Economics said “November’s money and lending data suggests that households’ caution with their borrowing and saving ahead of the Budget hasn’t gone away.

“This adds further downside risk to our forecast for GDP to stagnate in Q4.” The BoE said mortgage approvals fell to 65,720 in November from 68,129 in October, the lowest reading since August. The annual growth rate for all consumer credit decreased to a 29-month low of 6.6% in November, from 7.3% in October.”