The value of new lending commitments to households fell 1.3 per cent in May 2019, seasonally adjusted, according to the latest Australian Bureau of Statistics (ABS) figures on new lending to households and businesses.
The fall in new lending to households in May follows a 0.6 per cent rise in April 2019.
ABS Chief Economist, Bruce Hockman said: “Most components of new lending to households fell in May, led by weaker lending for owner occupier dwellings (down 2.7 per cent) and for investment dwellings (down 1.7 per cent).”
Weaker lending for owner occupier dwellings in May was driven by a 3.5 per cent fall in New South Wales with lending weaker in most states and territories. Similarly, New South Wales drove the fall in investment dwelling lending in May.
There was a small rise in the number of loans to owner occupier first home buyers (0.8 per cent) in May compared to a 1.0 per cent fall in the number of loans to owner occupier non-first home buyers. Lending to owner occupier first home buyers is up 4.6 per cent on December 2018 and trend lending to first home buyers rose for the second consecutive month (0.3 per cent in May).
Personal finance fell 0.7 per cent in May in seasonally adjusted terms following a 4.2 per cent rise in April and is down 16.2 per cent on May 2018.
In trend terms, the value of new lending commitments to businesses rose 3.6 per cent in May and is up 13.7 per cent since May 2018.