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Andrew Hanlan, analyst at Westpac, explains that for the Australian private sector credit, it’s a case of another month and another soft update with credit growth has moderating to a slow pace led by the housing downturn.

Key Quotes

“The positive is that the pace of decline for the housing sector appears to have eased early in 2019.”

“In March, credit grew by 0.3%, including a +0.25% for housing, a -0.3% for personal and a +0.5% for business.”

“Annual credit growth slipped below 4%, to 3.9%, for the first time since the end of 2013. The 3 month annualised pace is 3.1%, following a 2.8% for February – the weakest result since early 2013.”

“Credit growth has progressively slowed since expanding by 6.6% in 2015, with growth moderating to 5.6% in 2016, +4.8% in 2017 and +4.3% in 2018.”