Friday, September 18, 2009
Big borrowing, weak lending
Posted by David Smith at 10:00 AM
Category: Thoughts and responses

The August UK public finances were no worse and on some estimates a little better than expected, though everything is relative these days. Public sector net borrowing was 16.1 billion, compared with 9.9 billion a year earlier. The current budget deficit ws 12.8 billion, up from 7.7 billion. Public sector net debt is now 804.8 billion, up from 632.8 billion. As a percentage of GDP the rise over the past year is from 44% to 57.5%. The numbers suggested the government is broadly in line with the Treasury's 175 billion borrowing forecast. But these are early days - and that is a very big number. More here.

Meanwhile, the Bank of England released both its trends in lending report and broad money figures for August. Both were weak. M4 and M4 lending increasing by 0.1% on the month. More on the Bank site.