§ 28. Mr. Menzies CampbellTo ask the Chancellor of the Exchequer if he will make a statement regarding the December and January figures for retail sales and consumer credit.
§ Mr. LilleyBetween December and January the volume of retail sales fell 1½ per cent. in real terms.
The amount of consumer credit outstanding to finance houses and other specialist credit grantors, building societies, retailers and on bank credit cards increased by about £0.3 billion in December. The amount outstanding on all consumer credit agreements (published quarterly) increased by £1.3 billion in the fourth quarter of 1988, the lowest rise since the fourth quarter of 1987. Figures for January are not published yet.
These figures provide further evidence that growth of consumer spending and borrowing has slowed significantly since last summer, and that tighter monetary policy is proving effective.