Signs of pickup as credit card debt up 5%

Lending to households and businesses continued to decline over July, although there are signs that the deposit books at the Irish banks have stabilised, according to the latest data from the Irish Central Bank.

However, credit card debt rose by 5% from Jul 2011 to Jul 2012 — the first year-on-year rise in four years, potentially pointing to a tentative pickup in consumer demand.

Bank lending to households was down 3.6% in July compared with Jul 2011. Mortgage lending was 2.1% lower in Jul 2012 than it was in the same month in 2011, although lending for consumption and other purposes dropped by 7.8% for the same period.