Login
ISCOVER
Veda has warned that the Australian economy appears sluggish despite a big jump in commercial mortgage volumes.
The Quarterly Business Credit Demand Index reported that business credit grew by 2.1 per cent year-on-year for the 12 months to 31 March 2014.
To continue reading the rest of this article, please log in.
Looking for more benefits? Become a Premium Member.
Create free account to get unlimited news articles and more!
Looking for more benefits? Become a Premium Member.
That was driven by an 18 per cent jump in commercial mortgage volumes, according to Veda.
Trade credit applications also grew 1.9 per cent, while asset finance applications declined 0.2 per cent.
Veda said the quarterly index offered a good indication of what was happening among small and medium-sized enterprises (SMEs).
“The growth in commercial mortgage applications shows the same factors that are driving consumer credit demand – such as low interest rates – are driving SME interest in property,” it said.
Veda also highlighted a link between the index and the Australian economy.
“Given the historical relationship between the [two], Veda’s latest business credit data would indicate growth in the Australian economy continuing to remain below trend in early 2014, at a rate similar to the 2.8 per cent recorded in the year to the December quarter of 2013.”
