Sharechat Logo

Credit application growth shows NZ economy picking up, says Veda

Wednesday 23rd January 2013

Text too small?

Mortgage applications rose nearly 20 percent in December from a year ago and people are also taking out more personal loans, in what personal credit rating agency Veda says proves the economy is recovering.

Veda sees 98 percent of all credit applications and says it sees evidence of a revitalised credit cycle and indicates New Zealanders are increasingly confident about the economy.

"We can talk ourselves out of feeling good or we can read the numbers - and I say the New Zealand economy is picking up and New Zealanders know it," Veda managing director John Roberts said in a statement.

A 19.71 percent rise in mortgage applications in December from the same month a year ago reflected not only a strong housing market but also strong competition among banks, which have reduced fixed-term rates, in particular.

Credit card applications fell 4.53 percent in December from a year ago but personal loan applications rose 11.83 percent and hire purchase applications rose 8.79 percent.

Roberts attributed the switch to maturity in consumers.

Overall, consumer credit activity increased by 8.07 percent in December from the same month a year ago.

 

BusinessDesk.co.nz



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Mandatory farm plans scorned as 'tick box' exercises
Kiwi dollar firms on weak US retail data, capped by rate-cut expectations
17th October 2019 Morning Report
SkyCity hoses down union claims over potential job losses
OPINION: Fair Payment Agreements and 'swallowing vomit' - the lot of the CTU
MARKET CLOSE: NZ shares gain; Restaurant Brands climbs on upbeat outlook
NZ dollar stalls after Bascand's rate cut comments
Bascand says RBNZ will consider changing bank capital proposals
Affordable electricity key to decarbonisation - Genesis
Graeme Hart trims global packaging empire with US$615m asset sale

IRG See IRG research reports