Lending to Aussie businesses grew last month

One simple way to assess the current state of the economy is see how much money companies have been borrowing from banks across Australia.

It is usually a good sign when a greater number of firms are approaching lenders for extra capital, as it shows that enterprises are looking to expand.

Unfortunately, recent statistics compiled by DBM Consultants indicated that the number of organisations looking to open a new lending account fell to 10.4 per cent in November 2011 from 14.4 per cent in June 2010.

However, more up-to-date figures released by the Reserve Bank of Australia this week are far more encouraging.

They show that business banking customers are starting to apply for more credit, as the number of loans issued by Australian banks in February grew by 0.4 per cent compared with January, Bloomberg reports.

This also represented a 1.2 per cent increase on February 2011, which suggests that business growth is moving in the right direction.

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