The Reserve Bank of Australia (RBA) has released its private sector credit aggregates data for the month of July 2019:
A chart showing the long-run breakdown in the components is provided below:
Personal credit growth (-0.4% MoM; -1.2% QoQ; -3.7% YoY) has plunged, whereas business credit growth (0.2% MoM; 0.4% QoQ; 3.9% YoY) and housing credit growth (0.3% MoM; 0.6% QoQ; 3.3% YoY) are at least growing, albeit slowly.
A long-run breakdown of owner-occupied credit (0.46% MoM; 1.07% QoQ; 4.88% YoY) and investor credit (-0.06% MoM; -0.13% QoQ; 0.29% YoY) is provided below:
Overall annual mortgage growth has tanked to an all-time low, with sharp falls in both owner-occupied credit and investor credit growth:
The below chart shows that quarterly mortgage growth also fell to the lowest on record in July:
Driven by investors:
Note: The RBA has changed its measurement of credit as outlined below:
From this release onward, the financial aggregates incorporate an improved conceptual framework and a new data collection. This is referred to as the Economic and Financial Statistics (EFS) collection. For more information, see Updates to Australia’s Financial Aggregates. All growth rates have been adjusted for the effects of series breaks resulting from these changes. Minor revisions to the historical growth rates of the financial aggregates reflect improvements in the RBA’s seasonal adjustment processes.
