The ABS has released findings on new lending to households and businesses that show the value of new lending commitments to households fell 2.4% in January 2019.
The fall in January follows a revised 3.6% monthly fall in December 2018.
The overall fall in lending to households was driven by weaker lendings for dwellings, at -2.1%. There were further falls in lending for investment dwellings, at -4.1%, and for owner occupier dwellings at -1.3% in January.
New lending for dwellings is down over 20% from January 2018, the largest through the year decline since late 2008. This is a reflection of the impact of both supply and demand factors.
The only household lending category to record a rise in January was lending to households for personal finance, up 1.2%. However, new lending is down 16% compared to January 2018, seasonally adjusted. In trend terms, the value of new lending commitments to businesses fell 1.3% in January 2019 but is up 2.5% from January 2018.