Picos financial manager for June

   Financial commitments rose in June, while personal finances fell, according to the Australian Bureau of Statistics. 

Total loans rose 7.6 percent in June to $ 72.9 billion, the highest level since January 2008, helped by a 12 percent increase in commercial loans. 

The data show that the number of committed financing company rose a seasonally adjusted 12.1 percent in the month to $ 46.495 billion. 

That compared with an upwardly revised figure $ 41.487bn May 

The increase was driven by trade credit revolving line of credit, which rose 38 percent in June. 

Fixed installations rose 0.9 percent after a sharp decline during the month of May. 

Personal loan commitments fell a seasonally adjusted 1.8 per cent to $ 8.505bn in the month. 

This compares with a revised figure of $ 8.664bn in May 

CommSec chief economist Craig James said the loan had been recovered to the level before the global financial crisis. 

"Consumers and businesses are embracing low-cost funds," he said. 

"We hope that the business case, some additional dollars put to work in new investments, in turn, led to hiring more staff." 

Over the past 12 months, the Reserve Bank of Australia kept interest rates at a record low of 2.5 percent. Expected to remain unchanged at least until the end of the year. 

Mr James said the continued low borrowing costs should help keep borrowing more, which would be good for the economy. 

"The economy has a healthy boost provided by the recovery of consumer confidence, increased home loan and build solid," he said. 

"While the environment is very favorable for companies that rely on residential development and purchase, the prospects increase for equipment and services companies and retailers discretionary." 

Housing finance for owner occupation rose 1.8 percent in June, rents rose 1.2 percent to $ 449 million, but private loans have a setback during the month, up 1.8 per cent, the ABS said.

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