Business credit demand has seen continuing gains as demand for consumer credit remains weak.
The Veda Business Credit Demand Index has shown business credit saw its eighth consecutive monthly gain in demand for September. Demand for business credit is now up 2.3% on last year. Veda said growth in the September quartter was 2.1% lower than the "bullish" June quarter, but still set a positive trend.
"“Despite concerns over a global credit crunch, results show eight months of relative gains in demand for business credit. This is a positive result given the economic uncertainty in financial markets at the macro level both domestically and internationally. Our results also align with the latest Australian Bureau of Statistics figures, which show commercial finance commitments rose to a three year high in August this year, an indication credit confidence is gaining momentum," Veda head of commercial risk Moses Samaha said.
Asset finance saw an 8.4% drop for the quarter, but Samaha said this followed a strong surge in the June quarter which put asset finance up 1.7% year-on-year.
"The September quarter drop is typical following a June quarter surge in the lead up to the end of financial year close, especially with regards to asset finance," he commented.
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