Australian business lending sees a small rise in April
April marked a slight increase in commercial lending after three months of decline.
Commercial lending rose by 0.3% in April 2017, ending a three-month decline.
The Australian Bureau of Statistics (ABS) today released its lending finance figures for April. The figures show small declines in all other areas outside commercial finance. Housing finance for owner occupation fell 0.1%, commercial finance fell 0.3% and lease finance saw a 1.1% decline.
The biggest decline was in personal finance, with a 2.7% drop in lending equating to over $160 million less being borrowed in April compared to March. This continues a downward trend that has unfolded over the last 12 months with only two brief rises.
While the increase in commercial lending is a change from the last three months, it's nowhere near as big as the rise between July and October 2016.
The rise in commercial lending is entirely the result of a 4.1% rise in revolving credit commitments. Fixed lending commitments, meanwhile, fell 0.6%.
But when seasonally adjusted, the rise in revolving credit still represents a 21.8% decline.
Revolving credit allows businesses to pay a small fee and then have access to funds as needed. Revolving credit is typically used to fund day-to-day business operations and fluctuates heavily.
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