From the TUC

Stagnation Charts #4: trends in lending

19 Apr 2013, by in Economics

The latest Stagnation Chart comes from the Bank of England’s monthly Trends in Lending report, which covers lending by all the UK’s financial institutions. The stock of lending to businesses fell by about £4.8 billion in Dec – Feb, but what’s more worrying is the fact that the recovery in business lending fell away. Indeed, lending is still in decline:

Lending 1In a recovery you would expect lending to businesses to grow as they scale up to meet growing demand. I’ve followed the Bank in separating out the real estate sector, which accounts for 40 per cent of business loans, don’t confuse this with mortgage lending, but that follows a similar pattern:

Loans 1Loans 2This is what stagnation looks like.

2 Responses to Stagnation Charts #4: trends in lending

  1. Gracie
    Apr 19th 2013, 6:05 pm

    How utterly depressing. Looking at these charts even if GDP has recovered slightly in Q1 and we avoid a triple dip recession, I don’t see that trend continuing for Q2.

  2. Stagnation Chart 5: GDP Per Capita | ToUChstone blog: A public policy blog from the TUC
    May 1st 2013, 11:22 am

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