Australian credit to the private sector is expanding at a modest pace as credit grew by 0.5% in March, following a 0.4% gain in February and below par outcomes of 0.3% in both December and January, points out Andrew Hanlan, Research Analyst at Westpac.
“Annual credit growth is 5.1% currently, following a 4.9% increase in 2017, representing a slowdown from a 5.6% for 2016 and a 6.6% in 2015.”
“The key themes are: a trend slowing in housing credit, led by investors, in response to tighter lending conditions; and business credit volatile around a modest uptrend.”
“In March the detail has moved back into line with the underlying themes. Business credit has bounced back, expanding by 0.8% to be 4.2% above the level of a year ago and housing was on the soft side, a resumption of the trend slowdown.”
“Housing credit grew by 0.45% in March, fully unwinding the surprise lift from a 0.47% in January to a 0.54% in February. Annual housing credit growth is 6.1% currently.”
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