Business lending in the doldrums
Business lending is in decline, with new commercial finance commitments falling for four straight months.According to the latest Australian Bureau of Statistics lending finance data, new commercial finance commitments fell 4.4 per cent in August, compared with the previous month (in seasonally adjusted terms).This follows a month-on-month fall of 2.7 per cent in July, a one per cent fall in in June and a 1.7 per cent fall in May.New lease finance commitments (a small category) were down 33.2 per cent, compared with the previous month. This fall followed a rise of 60.8 per cent in July.In the commercial finance category the biggest fall was in revolving credit (down 8.7 per cent in August), while fixed lending commitments fell 3.1 per cent.New business lending in August was worth A$40.2 billion - just 2.1 per cent higher than a year earlier.