Australia: Expect a modest gain of 0.4% in Mar private sector credit – Westpac

Analysts at Westpac explain that Australian credit to the private sector has begun 2017 on a softer note, weighed down by the volatile business segment and for March, they expect a modest gain of 0.4%, on the heels of a rise of 0.3% in February and a gain of 0.2% in January.

Key Quotes

“By comparison, in 2016, credit grew by an average of 0.5% per month to be 5.6% higher over the year.”

“Business credit expanded by 5.5% in 2016, but has hit a soft spot, continuing the stop-start pattern of late. For March, we expect a small gain on the back of a modest rebound in commercial finance, after business credit fell in both January, -0.4%, and February, -0.1%.”

“Housing credit, boosted by RBA rate cuts in 2016, increased by 0.57% in February and grew by 6.8% annualised over the past three months. A similar result is likely in March, ahead of the dampening impact from tighter regulatory controls.”