Business Credit Still Strong, Signs Personal Credit Rising Again
The RBA credit aggregates for September show that while total credit continues to grow at a solid 0.7% m/m, that monthly rate has been gradually slowing over the year. The annual rate continues to rise though and is now at 9.4%, the highest in 14 years.
- Personal credit was flat in September after two monthly rises and posted its first annual increase since August 2015, which could be indicating that cost-of-living increases may be impacting the household balance sheet. This is likely to be an indicator to watch going into 2023.
- Owner-occupied housing credit continued to rise 0.5% m/m but investor housing growth moderated to 0.3% m/m after reaching 0.6% earlier in the year. Both now appear to have peaked in annual terms.
- Business credit growth is showing no signs of moderating and posted robust 1.3% m/m and 14.7% y/y increases consistent with solid NAB business conditions.
- Broad money growth has also slowed and is now up 7.5% y/y.
Source: MNI - Market News/RBA