The amount of borrowing by the country's businesses is growing at its fastest rate since early 2009, according to the latest sector lending figures from the Reserve Bank (RBNZ).
And that increasing growth in the total amount of business borrowing is coming as the rate of growth in mortgage borrowing is slowing considerably.
Businesses borrowed almost $1.2 billion in April, according to the RBNZ, taking the total amount borrowed by corporate NZ to $126.9 billion, and giving an annual rate of growth in the amount borrowed of 8.8%, which is the highest level since February 2009 as business borrowing slowed markedly in the wake of the Global Financial crisis.
The gain for business from the banks is coming as the rate of growth in mortgage borrowing continues to slow markedly from the super-hot levels of the past couple of years.
In April the mortgage pile grew a little under $1.4 billion to a total of $337.1 billion. At the peak of the recent housing boom the mortgage stock was growing by $3 billion a month.
In the 12 months to April the housing stock grew by 8.1%, which is the slowest annual rate since November 2020 and well down on the 13-year high growth of over 12% seen in the middle of 2021.
Agricultural borrowing again drifted a little lower in April to $61.4 billion, with an annual growth rate of -1%.
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.