Investing.com - Net lending to individuals and households in the U.K. rose more than expected in May, reflecting stronger demand for credit, official data showed on Monday.
In a report, the Bank of England said total net lending to individuals increased by ₤2.7 billion last month, above forecasts for net lending of ₤2.5 billion and up from ₤2.4 billion in April.
Net secured lending rose by ₤2 billion, above expectations for an increase of ₤1.6 billion, after rising by ₤1.7 billion in April.
Net consumer credit, including personal loans, overdrafts, and credit card lending, increased by ₤0.7 billion, unchanged from the previous month.
Meanwhile, the M4 Money Supply decreased 0.1% in May, following a 0.2% decline in April. Analysts expected a 0.2% increase.
The report also showed that the number of final mortgage approvals fell to 61,700 in May from 62,800 in April. Economists had expected mortgage approvals to decline to 61,900.
Following the release of the data, the pound held on to losses against the U.S. dollar, with GBP/USD shedding 0.07% to trade at 1.7025, compared to 1.7025 ahead of the data.
Meanwhile, European stock markets were modestly higher. London’s FTSE 100 eased up 0.1%, the DJ Euro Stoxx 50 increased 0.2%, France’s CAC 40 tacked on 0.1%, while Germany's DAX edged 0.35% higher.