2010.09.2005:42:00UTC+00U.K. M4 Money Supply Drops Unexpectedly In August

U.K. M4 money supply decreased by a seasonally adjusted GBP 4.1 billion or 0.2% in August from the previous month, provisional data from the Bank of England showed Monday. Economists had expected a monthly 0.2% rise. The twelve-month growth rate eased to 1.8% from 2.3% in July.

Data showed that M4 lending dropped GBP 18 billion or 0.7% in August. Year-on-year, the growth rate fell to 0.6% from 1.5% in July.

At the same time, M4 lending, excluding the effects of securitisations etc., decreased by GBP 18 billion or 0.7% in August. On an annual comparison, it dropped 0.5% compared to an increase of 0.5% in July.

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