Credit growth slows again, in another sign of depressed economic activity
SA’s private sector credit growth moderated further in March, providing further evidence that the local economy is still in the doldrums. Growth in extension of credit to the private sector — consumers and business — slowed to an annualised 4.95% in March, its weakest level since November, and compared with 5.29% in February, Reserve Bank data showed on Friday. This outcome was not unexpected. "Depressed business and consumer confidence, as well as weak economic activity, have contributed to the suppressed rates of credit growth," Investec economist Kamilla Kaplan said last week before the release of the data. Growth in M3 money supply, the Bank’s broadest measure of how much money is circulating in the economy, also slowed — to 5.62% from 6.62% in February. When money supply increases, it typically increases the availability of loans, which individuals and businesses use to make purchases. The higher the money supply growth, the higher the growth in available funds. Conversely, if ...
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