UK money and lending annual growth slows in September 2026
UK broad money annual growth slowed to 4% in September 2026, while private-sector net lending growth eased to 6.2%. Both Bank of England measures remained positive but were below their June readings.
UK money and lending annual growth slowed in September 2026, with the sharper easing in broad money. Bank of England figures showed M4ex annual growth at 4%, down from 4.5% in August, while M4Lex growth slipped to 6.2% from 6.4%. Both measures continued to expand on a year-earlier basis, but at a slower pace.
M4ex measures sterling broad money excluding intermediate other financial corporations. M4Lex measures sterling net lending to the private sector, also excluding intermediate other financial corporations. Both readings are seasonally adjusted 12-month growth rates: September's declines were 0.5 and 0.2 percentage points respectively, rather than changes in monthly lending or money flows.
The money reading provides the clearer sign of lost momentum within the April–September period. Its annual growth rate rose from 4.6% in April to 4.9% in June, then eased in July. August's partial recovery did not persist, leaving September with the lowest money growth rate across those six months. That uneven path argues against describing the slowdown as uninterrupted.
Lending growth also remained below its June reading of 6.7%, but September was not the weakest observation in the same period: May's rate was 6%. Following unchanged readings in July and August, the latest easing points to softer annual credit expansion rather than a new acceleration. The historical comparison is therefore less pronounced for lending than for money.
A softer financial backdrop, not a direct output signal
Taken together, the readings suggest weakening momentum in monetary and credit expansion, rather than evidence of strengthening demand. Slower growth in money balances could temper support for nominal spending if households and businesses respond by restraining expenditure. That channel depends on how balances are held and used; the aggregate does not establish that spending actually slowed.
Continued lending growth could still support expenditure or investment where borrowers deploy financing for those purposes. However, growth in outstanding credit does not establish stronger demand for new loans or easier financing conditions. Nor do these nominal financial measures show whether purchasing-power-adjusted activity increased.
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