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Corporate lending starts to slow

Saturday 19 December 1998 00:02 GMT
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Corporate lending starts to slow

LENDING to the private sector is beginning to slow as businesses cut back on borrowing, according to official figures released yesterday. Lending of M4 - a broad measure of money supply - was just pounds 1.5bn in November, the weakest figure since December 1996. Overall, M4 grew by 0.2 per cent last month, taking the annual growth rate to 8.4 per cent, the lowest since August 1995.

Separately, the British Bankers' Association (BBA) said total bank lending to the private sector rose by just pounds 431m last month. According to the BBA, consumer borrowing is still strong, but there are signs of weakness in industry.

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