There is no economic recovery to be seen in Bank of England savings and lending data

Posted on

This chart is in data just published for August by the Bank of England:

Bank lending to businesses is now negative i.e. in aggregate businesses are repaying loans now. How that is the basis for an economic recovery defeats me.

At the same time savings look like this:

They are still running at way above pandemic levels. So much for the coiled spring uncurling. Average interest rates are also at their lowest levels.

That people are saving is also reflected in the consumer credit data:

People are only just borrowing again, and at much lower than pre-pandemic levels.

The only thing that has grown is mortgages:

But that peak looks to be well and truly over.

Nothing in any of this data makes it look like there is an economic recovery going on.


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