Australia’s private sector credit rose 0.6% month-over-month in August 2026, slightly above market expectations of a 0.5% increase and matching the pace seen in July.
Housing credit, which accounts for 62% of total private credit, increased by 0.4%. This was the smallest monthly rise since January 2025 and marked a slowdown from July’s 0.5% gain, reflecting weaker growth in investor credit (0.3% vs 0.4% in July), while owner-occupier credit was unchanged at 0.5%.
Business credit, representing 34% of total private credit, grew by 0.9%, down from a 1.0% rise in July and the slowest pace in four months. In contrast, other personal credit, which makes up the remaining 4%, accelerated, rising 0.7% after a 0.5% increase in the previous month.
On an annual basis, private sector credit expanded by 8.4%, the same rate as in July. Year-ended growth in housing credit eased to 7.3% from 7.5%, while business credit growth picked up to 10.9% from 10.6%, and other personal credit accelerated to 5.1% from 4.8%.
