Demand for business credit continues to contract, falling six per cent in the September 2008 quarter, according to an index published by Veda Advantage and drawing on inquiries through its credit bureau.The fall is the third in succession, following a 2.4 per cent decline in the June quarter and a seven per cent drop in the March quarter, when compared to the corresponding period a year before.The monthly pattern emerging from the September quarter is of most concern, gaining downward momentum, with July down 2.6 per cent, August 6.3 per cent and September 9.5 per cent, year on year.Geographically, the eight per cent decline in the September quarter for South Australia businesses was the highest, with the mining states not immune.Western Australia fell 7.6 per cent, New South Wales was down 6.6 per cent, with Queensland off by 6.4 per cent. Victoria experienced the smallest drop at 4.8 per cent.A longer timeline displays the dramatic downward business credit change, with the mining states showing the most dramatic shift.In the first half of calendar year 2007 Western Australia increased 13.9 per cent, with an 8.6 per cent second half gain, followed by a 4.4 per cent drop in the first six months of 2008.Queensland increased twelve per cent and seven per cent for the 2007 halves, followed by a 2.8 per cent drop in the first half of 2008.New South Wales has had only one period of increase in the last seven halves beginning 2005, which was a 4.1 per cent increase in the first six months of 2007.In measuring the number of credit applications, and not the dollar value of credit approvals, the Veda index is more a measure of consumer sentiment than a measure of value of the credit market.The survey covers business credit accounts that include 30-day loans, hire purchases, lending proposals, commercial rentals, credit cards, bills of sale, utilities, personal commercial loans, real property mortgage and overdrafts.