Household credit and mortgage balances growth slowing further

Growth in the value of outstanding credit balances in the South African household sector slowed down further to 0,4% year-on-year (y/y) to R1 501,7 billion up to the end of February 2017.

The current downward trend in credit balances growth came against the background of a slowdown in growth in secured credit balances, whereas the component of unsecured credit balances is contracting further.

The value of outstanding household mortgage balances (R900,6 billion and 78,3% of total household secured credit balances at end-February) showed growth of 2,8% y/y up to the end of February. The continued low and declining mortgage balances growth is the result of financial strain experienced by many households and a low level of consumer confidence.

Against the background of trends in and the outlook for the economy, household finances and consumer confidence, growth in household credit balances, including mortgage balances, is expected to remain much subdued in 2017.

Read more here: Credit & Mortgage Advances February 2017