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New lending to households rises 0.6 per cent
The value of new lending commitments to households rose 0.6 per cent in April 2019, seasonally adjusted, according to the latest Australian Bureau of Statistics (ABS) figures on new lending to households and businesses.
The rise in new lending to households in April follows a 3.3 per cent fall in March 2019. Despite increases in the value of some components of household lending in April, including a 4.3 per cent rise in lending for personal finance, total new lending to households remained lower than a year ago (down 15.6 per cent).
ABS Chief Economist, Bruce Hockman said: “New lending commitments for dwellings edged up a modest 0.2 per cent from March to April, with a rise in lending for owner occupier dwellings (1.0 per cent) mostly offset by another fall in lending for investment dwellings (down 2.2 per cent).”
“The steep decline in owner occupier lending commitments seen since late 2017 appears to be slowing, with lending for owner occupier dwellings recording the smallest monthly fall in trend terms (down 0.5 per cent) since April 2018”, he said.
Stronger lending for owner occupier dwellings in April was driven by a 2.2 per cent rise in New South Wales and a 1.3 per cent rise in South Australia. Weaker investment lending was most evident in New South Wales (-4.7 per cent) with only Tasmania, the Northern Territory and Australian Capital Territory recording rises in investment dwelling lending.
In April, there was a small rise in the number of loans to owner occupier first home buyers (0.1 per cent). In contrast, there was a 2.0 per cent fall in the number of loans to owner occupier non-first home buyers.
More information is available in Lending to Households and Businesses, Australia (cat. no. 5601.0).
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