Westpac figures show slow growth in private credit

Data from Westpac has revealed that credit extended to people in the private sector, for example through credit cards, rose slightly during July.

Following a decline of 0.1 per cent the month before – the first fall recorded since 2008-09 – the figure returned to positive growth again, rising 0.2 per cent.

However, the improvement was met with muted enthusiasm by Westpac senior economist Andrew Hanlan, who described it as "sub-par".

He added that forecasts that the economy would start to pick up following the extreme weather conditions and natural disasters that plagued the nation in the first quarter had proved to be incorrect.

"Our analysis indicates that conditions remained relatively subdued in Q2 and into Q3," Mr Hanlan asserted.

Last month, MasterCard divisional president of Australasia Eddie Grobler said the credit card provider supported plans announced by the Reserve Bank of Australia to review surcharges, saying these should be a "true reflection of the cost" incurred through the transactions.

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