Lending growth down in September

According to the British Bankers’ Association (BBA), net growth was £10 billion, “well down” on August’s loan increase of £14.6 billion and the six-month average of £15.4 billion.

The rise in credit card debt fell at a slower rate than before. It decreased by £76 million compared with a fall of £496 million in August and the £222 million average over the previous six months.

“This year’s noticeable weakness in consumer credit continued in September with a negligible rise in personal loans and overdrafts whilst credit card lending declined again,” said David Dooks, BBA director of statistics.

“So far this year, borrowing on credit cards issued by the major banks has contracted substantially, by £1.4 billion.”

In addition to these findings, the Building Societies Association announced that mortgages grew, with approvals at £4,874 million for September 2006, a rise from £4,071 in the same month the year before.