Lending figures released by the Central Bank yesterday added further weight to recent evidence of a slowdown in the economy. The statistics showed that lending growth slowed in October, easing to 14.5 per cent from 16.5 per cent in September, the Central Bank said.
It noted that the slowdown in October partly reflected the impact of erratic items and a securitisation by one institution. Nonetheless, the underlying figures confirm a weaker trend.
They showed that the average rate of growth in private sector lending in the three months to October was 15.1 per cent.
This was down from the 18.9 per cent recorded in the first half of the year and well below the 25.7 per cent growth seen a year ago.
The annual rate of growth in mortgage lending was 18.9 per cent in October compared with 18.8 per cent in September. Though slight, this was the first increase since September 2000.
The figures also showed that currency in circulation fell in October for the third consecutive month. The fall was due to an increase in holdings of notes and coins by banks, probably reflecting the return of currency to the banks before the euro changeover.