Businesses now outdoing consumers in running up credit
Ethel Hazelhurst on Business Report:
“A breakdown of September credit figures shows companies are the big borrowers in South Africa.
They are borrowing more and at a faster rate than individuals, according to a Reserve Bank analysis of the DI 900s – monthly returns, submitted by the banks to the central bank’s banking supervision department.
Nico Kelder, an economist at Efficient Group, said: “The recent shift in the economy, away from consumer spending towards the production side of the economy, is becoming evident in the credit data.”
He highlighted the trend in a research note yesterday.
In the 12 months to September, individuals borrowed 37.5 percent more on their credit cards. But companies outdid them, “piling their debt 40 percent higher”, Kelder said.”
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