Australian business lending flops in February
This is the second straight month of decline.
The value of Australian commercial finance commitments fell in February, together with revolving credit.
The Australian Bureau of Statistics (ABS) released its latest lending finance data for the month of February, reporting a 1.8% month-on-month drop (trend) in total commercial finance commitments.
February's results mark two back-to-back months of decline, following four consecutive months of gains. Prior to September, figures hadn't risen since November 2015.
Revolving credit commitments sank lower in February, down significantly (-3.2%) month-on-month.
Revolving loan facilities allow businesses to borrow money as needed to fund working capital needs and maintain operations. Drawing against the loan brings down the available balance, whereas making payments on the debt brings up the available balance.
Fixed lending commitments in February were also slightly lower, falling by 1.5% month-on-month. The value of housing finance for owner occupiers rose by 0.2% in February, while personal finance dropped by 0.3% and lease finance soared by 6.4%.
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