New business lending falls for second month

Businesses appear to have put their gearing plans on hold as new business lending volumes have fallen for the second straight month.

According to the latest ABS commercial finance data, new lending to business fell one per cent in June, compared with the previous month (in seasonally adjusted terms).

This follows a month-on-month fall of 1.7 per cent in May.

After a strong start to the year, with A$49.9 billion of new business lending in January, lending in June was down to $47.6 billion.