Veda Advantage Credit Demand Index - October to December 2009

Veda Advantage’s quarterly Credit Demand Index*, released today, reveals record year-on-year increases in business credit demand, significant increases in mortgage applications and further declines in personal loans and credit card enquiries in the final October to December quarter of 2009.

Mortgage applications increased by 8% in the December quarter of 2009, over the same period in 2008. Combined credit card and personal loan applications fell 8% over the October to December quarter 2009.

The Business Credit Demand index saw an 11% increase in credit demand in the commercial sector in the October to December quarter of 2009 over the same period in 2008. (More on business credit demand – page 3.)

Chris Gration, Veda Advantage Head of External Relations said: “both consumer and business confidence appears to be rising steadily, largely driven by last year’s Government stimulus measures. Consumer credit demand for the final quarter of 2009 was once again underpinned by significant increases in mortgage applications. We may see a lift in demand for credit card and personal loans across 2010, reflecting the reduced amount of money available to first home buyers this year.

“Growth in short-term credit applications reflects businesses rushing to take advantage of Government tax incentives for equipment or automotive purchases, which expired on December 31, 2009. This trend may also reflect the need for liquidity after a challenging year with high demands on business cashflow,” Mr Gration said.