Four facts about Australia’s Recent Lending Data

Leave a comment
Australian Economy, Uncategorized

Recent data revealed by Australian Bureau of Statistics led to a hit in property market with total lending finance plunging by 3.2 per cent in May 2016, which attributes to the second consecutive fall. A drop in financing across all sectors measured was the key highlight.

Overall 17-month low value for lending: Lending in May was of the order of $67.5 billion which signified a 7% drop over the year, representing a 17-month low level. This comes at the back of the fall in total new lending commitments in housing, personal, commercial and lease finance.

l1

Personal and Commercial Finance (Source: Australian Bureau of Statistics)

Mixed sentiments on personal finance commitments: Personal finance suffered a blow of 4.6 per cent post 2.4 per cent rise in April on seasonally adjusted terms. For the personal finance category, fixed lending commitments fell by 2.3 per cent, while revolving credit commitments fell 7.8 per cent on seasonally adjusted terms. The trend series otherwise indicated a rise of 0.9% with revolving credit commitments rising 1.8% and fixed lending commitments rising 0.3%.

l2

Purchase of dwellings for rent/ resale (Source: Australian Bureau of Statistics)

Drop in owner occupied housing commitments: Under trend basis and seasonally adjusted basis compared with April 2016, all housing finance dropped by 0.6 per cent. Home loans growth for rent and resale jumped 3.9 per cent month-on-month in May although loans to owner-occupiers fell 0.6 per cent. At the same time, market does witness concerns about Australia’s housing segment suffering an impact from a fall in prices due to an oversupply of apartments (particularly in Melbourne and Brisbane). Loans to first home buyers were of the order of 8,488 indicating otherwise a rise since December’s 9,367. Commercial finance fell 4.1% on seasonally adjusted terms, which is a drop for the second month. Fixed lending under commercial commitments fell by 4.4 per cent against the 3.2 per cent drop in revolving credit.

Lease, a losing category: Lease finance category witnessed fall in total lease finance commitments by 3.9% in May 2016 on trend basis and the seasonally adjusted series fell 14.2%, following a fall of 0.6% in April 2016.

kunalsa1 (1)


Disclaimer
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkine.com.au and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376).The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation. Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product. The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd currently hold positions in:  BHP, BKY, KCN, PDN, and RIO. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.

 

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s