Demand for private sector credit accelerated at its fastest pace in nine months in November, with corporate loans picking up significantly.
Private sector credit extension rose 2.46% year on year in November, up from 1.29% in October, and marking a fifth consecutive month of growth.
The consensus forecast, according to macroeconomics website Trading Economics, was for 1.5% growth.
Month on month, credit demand rose 1.6% in November, the highest observed since March 2020, said Nedbank Group Economic Unit economists Liandra da Silva and Nicky Weimar in a note.
Corporate loans recorded the highest annual growth rate observed since April 2020, accelerating from 0.7% in October to 3.2% in November. “This is a positive development given that the uncertain economic environment has weighed on corporate credit demand for over a year,” the economists said.
Covid-19 has prompted many companies to prioritise debt reduction and put off expansion plans, given the high levels of uncertainty generated by the pandemic.
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