The British Bankers Association has announced that lending by the major UK banks in April was £2.7 billion, down from £3.4 billion the month before. But mortgage approvals in April were actually up on the previous month by 4% - but still 16% down on April last year. And perhaps not surprisingly, the average mortgage value was £129,100 having been £155,100 a year earlier.

Bank loans for car buying was £1.5 billion, the same as the previous month but still 39% down on the same month last year. And credit card spending was down 11% lower than 12 months ago.

What does all this mean?

Well, the massive stimulus injected into the UK economy by the Bank of England has stimulated nothing. What it has done, is arrest the decline. What would have happened if the Bank hadn’t injected the money, we hate to think about!

The housing market remains weak as mortgage lenders control advances through restrictive lending conditions and, whilst the numbers of house sales are marginally picking up, prices continue to fall albeit at a slower pace. Estate agents will try to talk the market up referring to higher mortgage approvals – but the fact is that the value of mortgage lending remains weak.

In our view, until consumers’ confidence returns and the banking system regains its ability to lend (is that a chicken and egg scenario?), tough times will remain. Still no “green shoots”.