It seems RBA Governor Glenn Stevens’s entreaty to Australian business leaders to let the animal spirits loose did not fall on deaf ears, as data released by APRA yesterday shows.
Deutsche Bank analysts Andrew Trigg and James Wang wrote in a note this morning that “The business lending recovery appears to have taken hold with system lending up 7% in the month and 9% over the last 12 months.”
Separately Michael Workman, CBA senior economist, said after yesterday’s RBA credit aggregates that “Business credit rose by 0.2% in March with annual growth at 5.3%pa. Higher growth in business credit growth would assist with the transition to higher levels of non-mining capex in 2015 and 2016.”
These are still only tentative signs, but the business lending data fits with the improvement in the NAB Business survey for March, which showed both conditions and confidence rose during the month.
Maybe business had turned the corner. If so, that’s great news for the economy.