Economy receives borrowing boost

Commercial finance has been stubbornly weak since the global financial crisis froze credit markets, but posted a 5.6 per cent bounce during August with $28.5 billion borrowed according to the Bureau of Statistics' seasonally adjusted figures.

The more stable trend figure was still negative, -0.3 per cent for the month, but indicated the rate of decline in commercial finance is easing.

The personal finance figures also recorded a bounce, up 4.1 per cent to $7.2 billion borrowed by households for non-housing related purchases, much of it on credit cards.

However, as revealed in last week's release of the housing finance figures, loans for owner-occupied homes fell 1.7 per cent during August.

Lease financing was still a weak point, falling 9.4 per cent seasonally adjusted, and 0.7 per cent in trend terms, but it is a relatively small category of finance, only accounting for around $400 million in August.