The Veda Quarterly Consumer Credit Demand Index, measuring the volume of credit card and personal loan applications, rose at a rate of 2.6% in the September quarter, compared with the same period in 2015.
Growth in personal loan applications was a key driver of the eighth consecutive quarter of growth in the Index, which was released today by Veda, Australia and New Zealand’s leading provider of consumer and commercial data and insights and a wholly-owned subsidiary of Equifax.
Credit demand bounced back in the month of July, following the Federal election, but was softer throughout August and September. Although overall consumer credit applications rose this quarter, the annual rate of growth is still more subdued than it was earlier in the year.
Angus Luffman, Veda’s General Manager of Consumer Risk, said that the mixed results seen in the September Credit Demand Index, which measures demand for discretionary consumer credit, were a reflection of the varied economic conditions and the continued trend of consumers remaining circumspect about taking on additional credit.
“The Index, while still positive, has trended downward throughout 2016. This declining appetite for credit has been reflected in falls in the stock of other personal credit (excluding housing), as measured by the Reserve Bank of Australia, which was down by -1.2% for the year to August. This represents eight straight months of declining personal credit and the sharpest fall since June 2012,” Mr Luffman said.
The Veda Quarterly Consumer Credit Demand Index provides an early indication of movements in consumer spending and retail sales.
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