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South African Reserve Bank data show that growth in M3 money supply also slowed.
South African Reserve Bank data show that growth in M3 money supply also slowed.

Private sector credit moderates in June

ECONOMIC NEWS

By Andries Mahlangu - Aug 1st 2017, 08:24

SA’s private sector credit growth moderated more than expected in June, suggesting low levels of business and consumer confidence. 

Growth in extension of credit to the private sector — consumers and business — moderated to an annualised 6.16% in June from 6.69% in May, according to South African Reserve Bank data released on Monday.

Analysts had expected growth in the private sector credit to have eased to 6.5% in the review period.

Growth in M3 money supply, the Bank’s broadest measure of how much money is circulating in the economy, moderated to 5.96% from 5.98%.

If money supply growth slows, it can have a negative effect on economic growth by leading to tighter lending.

Conversely, 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.
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Read more about: sa economy | private sector | growth | credit

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