Buoyant British consumer credit continued to rise at a faster pace in August, although the rise in people's borrowing against their homes slowed, the Bank of England (BoE) said today.
Consumer credit rose £1.58 billion sterling compared with £1.51 billion in July, although below market expectations of £1.6 billion.
Lending secured on dwellings rose by £7.7 billion, compared with a rise of £8.2 billion in the previous month, pushing the rise in total net lending down to £9.29 billion in August versus £9.72 billion in July.
The figures may ease concern among the BoE's Monetary Policy Committee that Britons'seemingly unstoppable thirst for higher debt levels could end in tears.
The fear was that rising debt levels combined with slowing income growth could eventually lead to a sharp drop in consumer spending that has kept the economy afloat in recent years while the manufacturing sector has been struggling.
The figures also showed 120,000 new mortgages were approved in August, the highest figure since October 2002, compared with 112,000 in July.