Lending To Households Down 3.7 % In March 2019

Lending To Households Down 3.7 % In March 2019

Australian Bureau Of Statistics

Lending To Households Falls 3.7 %

Victor P Taffa

Value of new lending commitments to households fell 3.7 % in March 2019, seasonally adjusted, according to the latest Australian Bureau of Statistics (ABS) figures on new lending to households and businesses.

Fall in lending to households in March follows a 2.2 % rise in February 2019.

All components of new lending to households were weaker in March, more than offsetting a bounce in lending activity seen in February.” ABS Chief Economist Bruce Hockman said.

“There were large falls in the value of lending for owner occupier dwellings in seasonally adjusted terms in both New South Wales (-5.7 %) and Queensland (-5.3 %) in March, after rises in both states the previous month.”

Nationally, lending for investment dwellings also contracted further in March, with the series down 25.9 % (seasonally adjusted) compared to March 2018. The level of new lending for investment dwellings is at its lowest level since March 2011.

While nationally there was a fall in the number of loans to owner occupier first home buyers (-0.5 %) in March, in a similar pattern to recent months this fall was again much less than the drop in the number of loans to owner occupier non-first home buyers (-3.3 %).

After rises in January and February, lending to households for personal finance excluding refinancing fell 11.2 % in March, seasonally adjusted.

In trend terms, the value of new lending commitments to businesses fell 2.0 % in March. All components of business lending remained subdued.