Overall credit growth rose again in October, with business lending experiencing the biggest increase, according to a major bank.
Research by ANZ and the Reserve Bank found that total credit growth was up 0.7 per cent for the month and up 6.7 per cent year-on-year.
Business credit growth once again saw the biggest monthly increase (1.0 per cent), and rose 6.6 per cent year-on-year.
Total housing credit growth was up 0.6 per cent in October, and increased by 7.5 per cent year-on-year. Owner-occupier credit growth rose 0.7 per cent during the month, and by 6.1 per cent year-on-year, while investor credit growth was up 0.4 per cent for the month, and by 9.7 per cent year-on-year.
Personal credit growth was the only sector to experience a drop – down 0.3 per cent for the month – while its year-on-year growth remained steady.
ANZ said solid business conditions and confidence should see credit growth continue for that sector, but the longer-term outlook will be constrained by businesses’ soft investment intentions.
“Meanwhile, total housing lending remained solid in October, although easing sentiment in the housing market and out-of-cycle mortgage rate increases at the end of October should see credit growth slow from here,” the bank said.
[Related: Business credit growth hits seven-year high]