Growth in outstanding credit balances in the South African household sector slowed down further to 1,2% year-on-year (y/y) up to the end of September 2016 compared with 1,4% y/y at end-August.
The continued low household credit balances growth is related to some data distortions regarding unsecured credit balances as well as lower growth in secured credit balances. The value of total outstanding household credit balances amounted to R1 473,5 billion at end-September.
Household mortgage balances growth tapered off to 3,7% y/y, amounting to R887,2 billion at the end of September 2016. This component of household credit balances had a share of 69,4% in total mortgage balances, 60,2% in total household credit balances and 27,5% in total private sector credit balances at end-September.
Based on trends in and the outlook for the economy, household finances and consumer confidence, growth in household credit balances is expected to remain much subdued up to the end of the year and in 2017.
Read more here: Credit-and-Mortgage-Advances-Sep-2016
