The long-standing practice here has been to focus on non-financial monetary aggregates, where available, because movements in financial sector money holdings can be erratic and usually have little bearing on near-term economic prospects. <\/p>\n
Non-financial M4, encompassing money holdings of households and private non-financial businesses, fell by 0.1% between August and September for an annual decline of 0.7% compared with 0.3% the previous month – see chart 1. <\/p>\n
Chart 1<\/strong><\/p>\n The monthly movements in M4ex and non-financial M4 in September were depressed by savers shifting funds out of bank deposits into high-yielding National Savings growth bonds (now withdrawn). The impact of National Savings flows on annual changes has been minor, however: an expanded non-financial measure including National Savings and foreign currency deposits fell by 0.3% in the year to September – chart 1. <\/p>\n The LDI crisis distortion to the annual M4ex change will unwind in October \/ November – money holdings of non-bank financial corporations declined by £51 billion in October \/ November 2022 after a £65 billion jump in September.<\/p>\n —– Alarming indeed. I think it would be useful to have a much longer date axis on your charts. <\/p>\n This cycle is possibly reminiscent of the the late 80s to early 90s that saw significant unemployment and a housing bear market that lasted 6 years.<\/p>\n —– Please see longer-term chart appended to original post.<\/p>\n","protected":false},"excerpt":{"rendered":" UK money trends are recessionary \/ deflationary but not as disastrous as suggested by the Bank of England’s M4ex broad money measure, which plunged 4.2% in the year to September after a 0.6% annual decline in August. M4ex includes money holdings of non-bank financial corporations (excluding intermediaries such as central clearing counterparties, hence M4ex). These […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-4693","post","type-post","status-publish","format-standard","hentry","category-money-moves-markets"],"_links":{"self":[{"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=\/wp\/v2\/posts\/4693","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4693"}],"version-history":[{"count":1,"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=\/wp\/v2\/posts\/4693\/revisions"}],"predecessor-version":[{"id":7002,"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=\/wp\/v2\/posts\/4693\/revisions\/7002"}],"wp:attachment":[{"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4693"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4693"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4693"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![\"\"](\"https:\/\/newstar.squarespace.com\/storage\/311023c1.png?__SQUARESPACE_CACHEVERSION=1698769712828\")
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<\/span><\/span><\/p>\n
\nCOMMENT:
\nAUTHOR: David Cotton
\nEMAIL:
\nIP: 81.150.175.79
\nURL:
\nDATE: 10\/31\/2023 06:31:29 PM<\/p>\n
\nCOMMENT:
\nAUTHOR: Simon Ward
\nDATE: 11\/03\/2023 02:19:16 PM<\/p>\n