Aussies are shunning debt. Unless it’s for a new home

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Yesterday’s Lending Indicators data for September from the ABS revealed that Aussie households continue to shun consumer borrowings, with personal finance commitments falling to their lowest level on record:

As shown above, annual new personal finance commitments fell by 13% year-on-year and were 41% below the long-term average.

This followed Friday’s private credit data from the RBA, which showed that personal credit has also plummeted to its lowest level on record:

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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.