The latest private sector credit data released yesterday by the Reserve Bank of Australia revealed that the stock of personal credit collapsed by 12.5% in the year to August – the biggest plunge in recorded history:
As shown above, this decline in personal credit growth dwarfs the troughs of the GFC (-7.8%) and the early 1990s recession (-6.0%).
It follows a spate of other data showing collapsing consumer demand.
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