Businesses taking on more finance, ABS figures show
The number of companies securing credit and taking out business loans increased in March.
According to the Australian Bureau of Statistics (ABS), total commercial finance commitments grew by 8.8 per cent in seasonally adjusted terms during the month.
The figures indicated that revolving credit agreements were up by 20.5 per cent, following a drop of 27 per cent in February.
It was also confirmed that fixed lending commitments rose by 5.2 per cent after a fall of 0.1 per cent in the previous month.
These figures may come as a surprise to many people, as a lot of corporations were apparently reluctant to take on new credit while interest rates were so volatile.
The national cash rate remained at 4.25 per cent in March, which deterred some companies from securing extra finance in order to expand.
With this in mind, it would not be a shock to see lending figures improve dramatically when the results for May are eventually released, as the Reserve Bank of Australia cut the cash rate by 50 points at the start of the month.
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