Financial Aggregates May 2009

Release date: 30 June 2009

Total credit provided to the private sector by financial intermediaries fell by 0.1 per cent over May 2009, following a rise of 0.1 per cent over April. Over the year to May, total credit rose by 3.9 per cent.

Housing credit increased by 0.5 per cent over May, following an increase of 0.6 per cent over April. Over the year to May, housing credit rose by 7.0 per cent. The rise in housing credit over May was mostly due to growth in lending to owner-occupiers, with only weak growth in lending to investors.

Other personal credit fell by 0.6 per cent over May, following a similar decline over April. Over the year to May, other personal credit fell by 7.8 per cent, reflecting a large decline in margin lending.

Business credit fell by 0.7 per cent over May 2009, following a decline of 0.5 per cent over April. Since its peak in November 2008, the decline in business credit has been due to falls in foreign currency denominated lending. These falls reflect both the appreciation of the Australian dollar over this period and some reduction in the stock of foreign currency denominated lending. Over the year to May, business credit rose by 2.1 per cent.

Over the month of May, M3 increased by 1.2 per cent and broad money increased by 0.8 per cent. Over the year to May, broad money grew by 11.7 per cent.

All growth rates for the financial aggregates are seasonally adjusted, and adjusted for the effects of breaks in the series as recorded in the footnotes to tables. Figures showing the levels of financial aggregates are not adjusted for series breaks. Historical levels and growth rates for the financial aggregates have been revised owing to the resubmission of data by some financial intermediaries, the re-estimation of seasonal factors and the incorporation of securitisation data.