Businesses Credit Demand Slows in Q1 Across most Market Sectors and all States:
- Business credit growth slows for second consecutive quarter, first time this has occurred since June 2010
- Slowing credit demand highlights risk of GDP growth being less than 3% in 2013
- Overall demand for business credit eases across all states, increasing just 2.2% year on year
- Trade credit enquiries contract -2.5% year on year
Veda, Asia-Pacific’s leading provider of consumer and commercial data intelligence and insights revealed the results of its business credit demand index for the first calendar quarter of 2013. The index, which measures the change in credit demand for the March quarter compared to the same period in 2012, showed that overall business credit demand growth eased to 2.2% over the past year.
Veda’s index has historically proven to be a good indicator of how the overall economy is travelling, with movements in the index being highly correlated with growth in real GDP, investment in machinery and equipment, and building construction. Given this historical relationship, Veda’s latest business credit data appears to correlate with an expected annual GDP growth rate of about, or just under, 3%.
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