Similar to central Bank’s quarterly forecasts, BoE’s latest Agent Report shows consumer spending power had been hit by higher prices, and manufacturing export growth had risen which ‘mostly reflected the effects of the earlier decline in sterling’, also reflected in consumer goods price inflation markedly picking up through supply chains and into retail prices.
Credit availability is showing as `tightened slightly‘ for small and medium sized companies, but financing remained readily available generally. The Banks’ quarterly survey of lenders showed a net balance which is expected to tighten the availability of unsecured credit to consumers over the second quarter of 2017.
The Banks’ financial policy committee recently announced a review into the credit quality of new lending – Underwriting standards and the risk models used by banks and lenders have begun tightened credit scoring criteria.
The Report shows Investor demand for UK commercial real estate had increased, housing market activity had remained muted and rents were flat to modestly rising across the UK.
Article credit: Copyright SUF © 2017