Sydney - Friday - April 18: (RWE Aust Business News) - The key data item this week was housing finance which showed that demand was falling. The softer economic outlook was also reflected in the latest leading index from Westpac/Melbourne Institute. And the Reserve Bank's monthly survey of credit card spending showed that growth in that particular area of debt accumulation was the slowest on record in February. For owner-occupiers, housing finance fell by a large 5.9 per cent compared to expectations for a small 0.5pc rise. TD Securities senior strategist Joshua Williamson said finance for established dwellings took the brunt of the fall in finance values, down by 6.9pc as low affordability and higher interest rates curbed demand. "The housing finance data adds to evidence of a slowing economy that started with falling business and consumer confidence, weak retail sales, building approvals and a decline in job advertisements." In seasonally adjusted terms, the number of commitments for owner occupied housing fell 5.9 per cent in February, the Australian Bureau of Statistics said. The value of dwelling finance commitments excluding alterations and additions decreased 7.1pc. Investment housing commitments decreased 9.5pc and owner occupied housing commitments decreased 6.0pc, by value. The number of commitments for refinancing of established dwellings decreased 5.7pc.
