NZ housing sector lending growth hits record low in October

Total household lending by banks and non-banks in New Zealand rose just NZ$229 million to NZ$174.065 billion in October, a record low for any one month’s growth as new housing lending dried up and consumer lending contracted.

The annual growth in the year to October of 6% is the lowest on record, slipping beneath the previous low of 6.4% in the year to March 2001, Reserve Bank figures show. The growth in housing lending, excluding consumer lending, of NZ$261 was equal lowest with growth in September 2001.

However, new lending to businesses surged NZ$1.452 billion to NZ$79.13 billion in October, due largely to corporates being forced to use emergency bank lending facilities because they were unable to roll over or refinance commercial paper and medium term note programmes.

 

This pushed annual growth in business lending back up to 11.025%, the highest annual growth rate since April.

Farm lending continues to barrel along with agricultural sector credit growing NZ$590 million for the month to NZ$42.687 billion, despite a weakening outlook for the dairy sector and falling farm prices, although October is the peak of the dairy season.

This forces seasonal financing to handle inventory growth in dairy cool stores.

This article has kindly been republished courtesy of interest.co.nz.  To view this article and other news updates from interest.co.nz click here.

Posted: 1 Dec 2008

News articles

Browse articles
by date

September 2013

July 2013

June 2013

May 2013

December 2012

November 2012

September 2012

June 2012

April 2012

March 2012

February 2012

January 2012

December 2011

November 2011

October 2011

September 2011

August 2011

July 2011

June 2011

May 2011

April 2011

March 2011

February 2011

January 2011

December 2010

November 2010

October 2010

September 2010

August 2010

July 2010

June 2010

May 2010

April 2010

March 2010

February 2010

January 2010

December 2009

November 2009

October 2009

September 2009

August 2009

July 2009

June 2009

May 2009

April 2009

March 2009

February 2009

January 2009

December 2008

November 2008

October 2008

September 2008

May 2008

April 2008

March 2008

Please disregard these fields.


banner ad