Veda, Australasia released the results of the Consumer Credit Demand Index which revealed a sharp decline in credit card applications across Australia in the last quarter of 2011. This bucked the trend from earlier quarters in 2011, pointing to a slowdown in consumer demand for credit during the final quarter of the year. Compiled by Veda since 2004, the Consumer Credit Demand Index is a quarterly analysis of changes in consumer demand for credit cards, personal loans and mortgages across Australia.
“To see such a marked reduction in the use of credit by consumers in the period leading up to the Christmas holidays is unusual; the final quarter of the year is typically a time when there is stronger demand from consumers to obtain new credit, ” commented Angus Luffman, Head of Consumer Risk at Veda. “Contrary to the usual trend, all states saw demand for credit cards and personal loans retreat from what had been an upward trend throughout 2011, leaving credit demand flat on 2010. As a leading indicator of economic activity and trends, the Index supports other economic data suggesting that consumers are being more circumspect.”