Today’s Lending Finance data, released by the ABS, revealed that lending growth is well past its peak.
The below charts, which track lending on a trend basis, illustrate the current state of play.
First, total finance commitments peaked in June 2014, and have been trending down ever since, down 4.1% since June:
The overall fall in finance commitments has been driven by commercial, where the value of commitments have fallen 7.5% since June 2014:
By contrast, owner-occupied housing finance commitments (excluding renovations) hit a new record in October, but are clearly peaking:
Housing renovation activity continues to trend up gently, but remains well below former highs:
The situation is similar for lease finance commitments:
By contrast, personal finance commitments hit a new high in October, and are trending up strongly:
