Australia’s private sector credit rose by 0.7% month-over-month in May 2026, unchanged from March and April and slightly above market expectations of a 0.6% increase. Housing credit, which makes up 62% of total private credit, grew by 0.5%, slowing from a 0.6% rise in April as both owner-occupier credit (0.4% vs 0.5% in April) and investor credit (0.8% vs 0.9%) lost momentum.
Business credit, accounting for 34% of the total, climbed 1.0% after a 0.7% gain in April, while other personal credit, representing the remaining 4%, advanced 0.6% following a 0.2% increase in the previous month.
On an annual basis, private sector credit expanded by 8.2%, the fastest pace since November 2022, after an 8.0% rise in April. Annual housing credit growth held steady at 7.5%, while growth in business credit (9.9% vs 9.6%) and other personal credit (4.4% vs 4.3%) both edged higher. This continued credit expansion occurred despite the Reserve Bank of Australia’s tighter monetary policy stance.
