Business finance boom past its peak
There are mixed signs on trends in business finance from the latest monthly data on lending finance from the Australian Bureau of Statistics.The value of finance commitments for the three months to May 2008 increased one per cent over the corresponding three-month period in each of 2007 and 2006. However, value over the twelve months to May was nine per cent higher than the prior year at $6.9 billion.The main reason is particularly high volumes from August 2007 to January 2008, a trend ascribed to investment relating to the mining boom at the time.On a monthly basis lease finance commitments for May fell seven per cent to $544 million, seasonally adjusted, while commercial finance commitments increased three per cent.