Australia: Slowing credit growth - Westpac

Andrew Hanlan, analyst at Westpac, suggests that the Australian credit growth has been slowing as the housing sector cools in response to tighter lending conditions and a softening of demand.

Key Quotes

“It was a soft end to the 2018 year, with credit expanding by only 0.2% in the month of December. This included a 0.3% rise for both housing and business, as well as a 0.4% decline in personal.”

“In 2018, credit grew by 4.3%, slowing progressively over the past three years, from 6.6% for 2015; 5.6% for 2016; and 4.8% in 2017.”

“Housing credit growth has slowed over recent years: from 7.4% in 2015; 6.3% in both 2016 and 2017; to 4.7% in 2018.”