FX.co ★ Australia Private Credit Growth Below Forecasts

In May 2025, credit within Australia's private sector experienced a modest decline, registering a 0.5% increase month-over-month, falling short of both market forecasts and the previous month's 0.7% rise. The primary factor contributing to this deceleration was a slowdown in business loans, which decreased to 0.8%, down from April's 1%. Conversely, personal loans showed a slight increase, advancing to 0.5% from April's 0.3%. Meanwhile, the growth rate of housing credit remained stable at 0.5%. Annually, private sector credit expanded by 6.9% in May, marking the most rapid growth since February 2023, and an improvement from the 6.7% recorded in the previous month.