U.k. Credit Business Rises in February

New credit advanced by finance houses, retailers, bank credit cards and other specialist providers of credit rose to 2.95 billion stg in February from 2.70 billion in Janaury, when bad weather had a depressing effect, the Department of Trade and Industry said.

Of the February total, 1.28 billion stg was advanced on bank credit cards.

On a three-month basis, total advances in December to February were 2.0 pct higher than in the previous three months. Within this total, lending to consumers rose by 1.0 pct and lending to businesses declined by 4.0 pct.

At end February the total amount outstanding was 24.5 billion stg, up from January’s 24.1 billion stg and 4.0 pct above the total three months earlier, the Department said.

February saw a rise of 400 mln stg in amounts outstanding to finance houses, other specialist credit grantors and retailers and on bank credit cards between end-January and end-February.

The Department said advances on bank credit cards rose by 4.0 pct between the two latest three month periods. Retailers advanced three pct less in the latest three months than in the previous three months, it said.