Lending to households rises 2.6% in February

The value of new lending commitments to households rose 2.6% in February 2019, seasonally adjusted, according to the latest ABS figures.

The rise in lending to households in February follows a 2.3% fall in January 2019. 

ABS Chief Economist, Bruce Hockman said: "Despite the rise in February, the longer term story is largely unchanged with new lending to households remaining subdued and well down on levels seen over the past five years. 

"Lending for owner occupier dwellings in New South Wales is a good example of this broader story, with the series still down over 20% from the peak of lending in August 2017, even after recording an 8.2% monthly rise in lending commitments in February."

At the national level, the value of lending for owner occupier dwellings rose 3.4% in February, while lending for investment dwellings recorded a more modest rise of 0.9%. 

The number of loans to owner occupier first home buyers rose 1.8%, slightly outpacing the rise in the number of loans to owner occupier non-first home buyers (up 1.6%). Both series though remain well below February 2018. 

Lending to households for personal finance rose 0.4% in February after a 1.2% rise in January.

While this is the first back-to-back increase in lending for personal finance since late 2017, the components of this lending generally linked to household consumption remained relatively weak. 

In trend terms, the value of new lending commitments to businesses fell 2.4% in February with weakness across most business lending categories.