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Business credit demand moderates in September quarter
Tags: Business credit demand Business Loans Trade Credit Asset Finance business insights small business
Business credit demand stabilised, down -1.2% year on year in the September quarter of 2023, following a strong June quarter 2023 result. Overall demand has steadied, with solid demand growth in the Accomodation and Food Services sector, offset by some softness in the Construction sector.
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Positive signs of recovery as business credit demand grows
Business credit demand grew +6.3% year on year in the second quarter of 2023, the biggest increase in two years. This is a positive sign for NZ businesses and the economy as demand returns to pre-pandemic volumes. According to Equifax, asset finance (+13.2%) and business loans (+7.2%) were the largest contributors to the June quarter increase, with trade credit relatively soft (+1.1%) year on year. This is a strong turnaround from previous quarters.
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Business credit demand softens amid economic headwinds
Tags: Business credit demand Trade Credit Business Loans Asset Finance business insights small business
Business credit demand fell -6.6% year on year in the first quarter of 2023, with demand across all commercial credit types below pre-pandemic levels. Demand is now at its lowest level since the initial lockdown in H1 2020, with a greater than average seasonal dip and severe weather events contributing to the decline.
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Business Credit Demand in Negative Territory During the Q4 2022 quarter
Overall business credit demand was down -1.7% year-on-year in the December 2022 quarter.