Private Sector Credit Rises 0.6% In Jan

The value of loans outstanding to the private sector grew in January, but personal credit has continued to flatline, data from the Reserve Bank of Australia shows.

The central bank’s financial aggregates for January show total credit increased by 0.6 per cent, after rising by 0.5 per cent in December. The result beats forecasts by analysts surveyed by Bloomberg, who had tipped a 0.5 per cent increase in the month.

In the 12 months to January total credit growth came in at 6.2 per cent, increasing on the 4.1 per cent rise in the previous year. Again, the result beat expectations, with analysts surveyed by Bloomberg having tipped a gain of 6 per cent.

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But personal credit growth was flat in January — after posting the same flatline result in December and November.

Business credit, meanwhile, increased 0.8 per cent in the month after lifting 0.5 per cent in December.

Housing credit grew by 0.6 per cent in January after posting the same increase in December.

Broad money, which includes currency, deposits and other short-term liquid liabilities, rose by 0.4 per cent in the month, after lifting 0.7 per cent in December.

For the twelve months to January, housing loans rose 7.1 per cent, compared with 5.6 per cent growth in the previous year.

But the growth of personal loans slowed in the last twelve months. Personal loans lifted 0.8 per cent in the year to January, down from a 1 per cent lift in the prior year.

Business loans, meanwhile, had lifted significantly over the year, rising 5.5 per cent, compared with a 1.9 per cent rise in the previous year.

Broad money rose 7.3 per cent over the year, up from 6.3 per cent over the prior year.

This news story is reprinted from www.businessspectator.com.au

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