Credit demand turns down

The mid-year bulge in demand for commercial credit has reversed, monthly flow data from the Australian Bureau of Statistics shows.

One measure of household credit demand is also soft, separate Reserve Bank of Australia data also showed on Friday.

Commercial finance commitments fell 2.2 per cent to A$9.6 billion in October from September on a seasonally adjusted basis, the ABS said.

The flow of commercial loans in October was more than 15 per cent less than the $47 billion level reported in June and July, and is back to monthly demand reported early in 2014.

The thrifty conduct of households is making it harder for lenders to earn a yield from their credit card portfolios.

Accruing credit card balances declined by A$667 million over October 2014 from September to $33. 4 billion, analysis by MWE Consulting of the RBA's monthly payments data shows.

This is 1.5 per cent below the October 2013 level and their lowest point since December 2009.

On an annual basis, average accruing balances declined by 2.1 per cent.

The average annual revolve rate also fell to 69.3 per cent, another measure of household caution.