Personal and business credit fall, housing up

The Reserve Bank has today released its financial aggregates report for August 2009, revealing a mixed bag of results. Personal and business credit fell, while housing experienced a lift.

Total credit provided to the private sector by financial intermediaries rose by 0.1 percent over August 2009, following an increase of 0.2 percent over July.

Housing credit also experienced an increase, jumping 0.6 percent in August, on the back of a 0.6 percent rise in July. Overall, housing credit has risen by 7.4 percent in the year to August, fuelled by growth in lending to owner-occupiers and investors.

Personal credit experience a slight lift of 0.5 percent in August, however in the year to August, personal credit fell by 5.6 percent.

Business credit didn’t fare too well, declining by 0.6 percent in August, following a fall of 0.2 percent in July. Overall, business credit has declined by 2.2 percent in the last year.

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