Lending Data Proves Inconclusive
Lending finance approvals rose in June, but while the trend may be positive, the sector remains sluggish. The value of lending commitments rose by 1.9 per cent in seasonally adjusted terms in June, according to ABS figures. Within the total, home loans were up 1.2 per cent, other personal finance (which includes lending to buy shares) rose by 1.9 per cent, and business loans including lease financing rose by 2.2 per cent.
Changes compared to June 2011, though, were modest. Home loans were up 2.6 per cent over the year, personal finance by 3.9 per cent and business finance by 2.3 per cent. Experts say that sluggish growth is not necessarily evidence of a weak economy and that many businesses, notably in the mining sector, can find plenty of cash to fund expansions without having to borrow money to do so.