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The latest private sector credit data from the Reserve Bank of Australia (RBA) revealed that the stock of personal credit, which was already in terminal decline, collapsed by 9.3% in the year to April – the biggest decline in recorded history:
Yesterday’s Lending Indicators data from the Australian Bureau of Statistics (ABS) supported these findings, revealing that total personal finance commitments fell to record low levels in both monthly and annual terms:
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As shown above, the value of personal finance commitments dived to $2.7 billion in April, down 26% year-on-year and roughly half average levels.
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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.
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