U.K. January new mortgage approvals were stable at 31k, in line with expectations but net lending was just GBP0.69 bln for the month of January, against the Reuters median estimate for 1.50 bln. Meanwhile, the December reading was revised down to 1.79 bln from 1.90 bln initially. Data hence continue to show little activity within the housing market and continued low mortgage approvals figures and low mortgage borrowing should ensure further house price falls.
Meanwhile, U.K. February manufacturing PMI slipped to 34.7 (median 35.9) from 35.8, close to November's record low of 34.5. The employment index fell to a new record low, dropping to 33.3 from 34.0 in January. Data hence highlight the very dire state of the U.K. manufacturing sector and suggesting that sentiments have not yet bottomed out.
Al Bawaba
