2017.02.2811:04:00UTC+00Australia's Private Sector Credit Slows Sharply in January

Australia's private sector credit posted a very weak increase in January, Reserve Bank of Australia data showed on Tuesday. Private sector credit in Australia was up 0.2 percent on month in January, shy of expectations for an increase of 0.5 percent and followed the 0.7 percent increase in December.

On a yearly basis, credit advanced 5.4 percent also missing expectations for 5.6 percent. Broad money was up 1.0 percent on month and 7.0 percent on year.

Details of the report showed the weakness in January’s credit growth was driven by the business sector. Housing credit was up 0.5 percent on month and 6.4 percent on year, while personal credit fell 0.2 percent on month and 1.3 percent on year and business credit lost 0.3 percent on month but gained 4.7 percent on year.

"We expect this weakness in credit growth will be only temporary, supported by the ongoing pickup in business loan approvals and the improved CAPEX outlook for the remainder of 2016-17 reported last week." said ANZ in a report.