(Australian Associated Press)
The pace of lending to businesses went backwards in June while loans to property buyers edged up only slightly, according to statistics from the central bank.
The numbers showed overall private sector credit grew 0.1 per cent – below market expectations of 0.3 per cent – and credit for mortgages increased 0.2 per cent compared with the previous month while credit to business was down 0.1 per cent and personal credit fell 0.2 per cent.
The financial aggregates data released by the Reserve Bank of Australia on Wednesday revised down May’s total credit expansion from 0.2 per cent to 0.1 per cent and indicated that overall credit slowed to just 3.3 per cent during the past year.
Annual housing credit grew 3.5 per cent – the slowest growth rate since records started in 1976 – and business credit gained 4.0 per cent while personal credit fell 3.5 per cent in the 12 months to June.
Loans to property investors remained flat for the sixth consecutive month, also reaching a record low 0.5 per cent in the past year.
Owner-occupier credit grew 0.2 per cent in June compared with the previous month, with the 4.9 per cent annual increase the weakest since July 2014.