Private sector credit (effectively outstanding loans) rose by 0.2 per cent in September after also lifting 0.2 per cent growth in August. Annual credit growth fell from 2.9 per cent to an 8-year low of 2.7 per cent.
Housing credit grew by 0.2 per cent in September. And the annual growth rate fell from 3.2 per cent to 3.1 per cent – the slowest growth rate on record.
Owner occupier housing credit rose by 0.4 per cent in September to stand 4.8 per cent higher over the year – equalling the weakest annual growth rate in the past 5½ years.
Investor housing finance fell by 0.1 per cent in September with the annual decline the biggest on record at -0.1 per cent.
Personal credit fell by 0.7 per cent in September – the equal biggest decline in 10½ years. Lending fell by 4.4 per cent over the year – the biggest annual decline in a decade.
I wonder when L-plate Treasurer Josh Recessionberg will figure it out.
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David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
