FEARS the consumer boom could be slowing have been fuelled by figures showing new mortgage loan approvals by major banks fell last month.

The British Bankers Association (BBA) said loans approved came to £6.88bn in August, eight per cent lower in number and ten per cent lower in value than in July.

New spending on credit cards also fell, to £5.79bn, four per cent below July, while demand for personal loans dropped one per cent.

A week ago, the Council of Mortgage Lenders said it expected the housing boom to cool next year, and on Wednesday, the credit card Research Group said it was beginning to see a more cautious spending pattern.

BBA chief executive Ian Mullen said approvals for new loans were noticeably lower in August, but he added: "Weakening demand at this time of year is not unusual".

Gross mortgage lending by the major clearing banks rose last month as past loans approvals worked through the system. The banks, 12 of the 15 largest mortgage lenders in the UK, lent £11.8bn, compared with £10.98bn in July.

Philip Shaw, economist at City stockbroker Investec, said credit card spending and new loans figures were still high.

"The big numbers will be in September, when we see how confidence is affected by the events of September 11," he said.