Private sector credit rises again in August

Private sector credit expanded by €4.2 billion in August as demand for mortgages increased strongly over the month.

Private sector credit expanded by €4.2 billion in August as demand for mortgages increased strongly over the month.

The latest credit statistics from the Central Bank show that a sharp rise in credit demand in August pushed the annual growth rate up to 28.2 per cent from a revised rate of 27 per cent in July.

August was the second busiest on record for mortgage lending as €1.8 billion of home loans were authorised.

Non-mortgage credit remains the main driver of private sector credit growth, accounting for over 50 per cent of the monthly rise.

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As a result, the annual adjusted growth rate for non-mortgage credit rose sharply to 28.1 per cent from a revised 26.4 per cent in July.

SSIA accounts rose by €163 million to €6.1 billion at the end of August.

Total lending by credit institutions in Ireland to non-Government Irish residents increased amounted to €236.8 billion in August.