The Reserve Bank of Australia (RBA) has just released the private sector credit aggregates, which registered an increase in total credit growth in the month of December, but the fourth lowest monthly housing credit growth in the series’ 35-year history and the lowest annual mortgage growth ever recorded:
Total credit provided to the private sector by financial intermediaries rose by 0.4 per cent over December 2012, after remaining unchanged over November. Over the year to December, total credit rose by 3.6 per cent.
Housing credit increased by 0.3 per cent over December, following an increase of 0.4 per cent over November. Over the year to December, housing credit rose by 4.5 per cent.
Other personal credit increased by 0.2 per cent over December, after decreasing by 0.2 per cent over November. Over the year to December, other personal credit decreased by 0.3 per cent.
Business credit increased by 0.7 per cent over December, after decreasing by 0.7 per cent over November. Over the year to December, business credit increased by 2.8 per cent.
A chart showing the long-run breakdown in the components is provided below:
Personal credit growth (0.2% MoM; 0.1% QoQ; -0.3% YoY) rose over the month but remained lower over the year. Business credit (0.7% MoM; -0.3% QoQ; 2.8% YoY) also rose over the month, but is up over the year. Housing credit (0.3% MoM; 1.1% QoQ; 4.5% YoY) grew over the year, but at the lowest level in the series’ 35-year history.
Focusing on the housing market, quarterly credit growth fell, but has recovered from the all-time low set in June 2012. Meanwhile, monthly housing credit growth (0.32%) was the fourth lowest recorded result in the series’ history, but it too has recovered from June’s low (0.20%):
Finally, a breakdown of owner-occupied credit and investor credit is provided below:
Investor credit growth (0.4% MoM; 1.2%QoO; 5.5% YoY) continues to out pace owner-occupied housing credit (0.3% MoM; 1.0% QoQ; 4.1% YoY).