Credit slowed in 2018
Reticent lending patterns continued through November 2018, with reduced flows across most sectors: commercial finance, personal finance, home loans, and lease finance, while lending for major renovations work was essentially flat after half a year of declines.
Commercial finance has slowed over the year, both for fixed loans and revolving credit.
Total lending was 7 per cent lower than a year earlier in November, representing an increasingly marked contraction.
Even the once-simple process of financing blocks of land to build homes has slowed demonstrably.
The slowdown has been less marked in Victoria, but then again it would want to be so given population growth across the state tracking at about 140,000 per annum.
The total value of residential blocks of land purchases financed hit the lowest level in 17 months in November.
Annual lending finance to buy both new and used vehicles also slumped to multi-year lows.
Housing markets that were already in a downturn haven't been spared.
In Darwin home prices are now down by about a quarter from their peak, and the trend for investor lending hit a fresh cyclical low in November.
The Northern Territory economy is in a most parlous state, with its budget forecasts blown to smithereens.
The Northern Territory economy is in a most parlous state, with its budget forecasts blown to smithereens.
Were there any bright spots?
Not many!
Mining is the one bright light industry wherein finance has picked up for both fixed loans and revolving credit, and this is one industry where wages might be expected to record solid gains in 2019, especially for FIFO workers.
With China's growth slowing to the most sluggish rate since 2009 the end of the Royal Commission can't come soon enough for the stalling Aussie economy.
