Household credit and mortgage balances growth remaining subdued

The value of outstanding credit balances in the South African household sector showed growth of 2,9% year-on-year (y/y) to a level of R1 505,5 billion at the end of the first four months of 2017. The above-mentioned household credit balances growth was the combined result of continued low growth of less than 2,5% y/y in secured credit balances and growth of below 5% y/y in unsecured credit balances over this period. The value of outstanding household mortgage balances increased by 3,1% y/y up to the end of April this year.

The forecast is for growth in household credit balances, as well as growth in household mortgage balances, to remain at relatively low levels in the rest of the year, driven by developments in and the outlook for the economy, household sector finances, consumer confidence and the residential property market.

Read more here: Credit and Mortgage Advances April 2017