ABS Lending Finance for August is out and shows growth across the board:
Jul 2011 |
Aug 2011 |
Jul 2011 to Aug 2011 | ||
$m |
$m |
% change | ||
| ||||
TREND ESTIMATES | ||||
Housing finance for owner occupation(a) |
14 361 |
14 554 |
1.3 | |
Personal finance |
7 081 |
7 145 |
0.9 | |
Commercial finance |
32 298 |
32 948 |
2.0 | |
Lease finance |
398 |
399 |
0.3 | |
SEASONALLY ADJUSTED ESTIMATES | ||||
Housing finance for owner occupation(a) |
14 420 |
14 513 |
0.6 | |
Personal finance |
7 043 |
7 199 |
2.2 | |
Commercial finance |
32 024 |
34 546 |
7.9 | |
Lease finance |
393 |
419 |
6.6 |
We know that the bounce in mortgage data is almost exclusively refinancing based. But the ongoing recovery in personal finance is interesting as the chart above shows, revolving credit (cards) is still very subdued but fixed loans (for the most part cars) is travelling quite nicely now. To my mind, the August bounce is pure interest rate relief.
That relief has extended to commercial finance too:
The next time the RBA tells you it doesn’t have the power to the effect credit issuance, just laugh (or cry).
So far, we are seeing a distinct split in the unleashing of pent-up demand after the MB line that rates would not rise again this year (or again in this cycle) went mainstream. There’s a modest pick in retail credit and spending. A better bounce in finance for cars. But only refinancing for mortgages. Very interesting.