Monday, September 20, 2010
Weak money
Posted by David Smith at 01:00 PM
Category: Thoughts and responses

Growth in the broad measure of the money supply, M4, remains extremely weak. Seasonally adjusted provisional M4 decreased by 4.1 billion (0.2%) in August, compared with an average monthly increase for the previous six months of 2.2 billion. The 12-month growth rate fell to a new low of 1.8% from 2.3% in July.

M4 lending decreased by 18 billion (0.7%) in August. The 12-month growth rate fell to 0.6% from 1.5% in July. M4 lending (excluding the effects of securitisations etc.) decreased by 18 billion (0.7%) in August. Its 12-month growth rate fell to -0.5% from 0.5% in July.

These were weak figures, of which more here. They were combined with the latest Trends in Lending report, here, which showed weaker lending to both businesses and consumers. This is the creditless recovery.