Credit application growth shows NZ economy picking up – Veda

Mortgage applications rose nearly 20 percent in December from a year ago and people are also taking out more personal loans, in what personal credit rating agency Veda says proves the economy is recovering.

The agency sees 98 percent of all credit applications and says it is evidence of a revitalised credit cycle and indicates New Zealanders are increasingly confident about the economy.

"We can talk ourselves out of feeling good or we can read the numbers, and I say the New Zealand economy is picking up and New Zealanders know it," Veda managing director John Roberts says in a statement.

A 19.71 percent rise in mortgage applications in December from the same month a year ago reflected not only a strong housing market but also strong competition among banks, which have reduced fixed-term rates, in particular.

Credit card applications fell 4.53 percent in December from a year ago but personal loan applications rose 11.83 percent and hire purchase applications rose 8.79 percent.

Mr Roberts attributes the switch to maturity in consumers.

Overall, consumer credit activity increased by 8.07 percent in December from the same month a year ago.

(BusinessDesk)

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NZ Market Snapshot

Forex

Sym Price Change
USD 0.7738 0.0041 0.53%
AUD 0.9487 0.0018 0.19%
EUR 0.6300 0.0061 0.98%
GBP 0.4939 -0.0001 -0.02%
HKD 6.0023 0.0323 0.54%
JPY 91.9380 0.4830 0.53%

Commods

Commodity Price Change Time
Gold Index 1189.4 -7.590 2014-12-17T00:
Oil Brent 61.2 -2.590 2014-12-17T00:
Oil Nymex 56.8 0.570 2014-12-17T00:
Silver Index 15.9 0.176 2014-12-17T00:

Indices

Symbol Open High Last %
NZX 50 5496.6 5532.8 5496.6 0.40%
NASDAQ 4712.4 4736.6 4644.3 1.96%
DAX 9711.6 9811.1 9544.4 2.79%
DJI 17367.8 17711.2 17356.9 1.97%
FTSE 6336.5 6466.0 6336.5 2.04%
HKSE 22878.3 22935.0 22585.8 1.09%
NI225 17143.0 17274.2 16819.7 2.32%