Consumers are cutting back on spending and banks have tightened their lending conditions.

This was confirmed by Wednesday's data from the SA Reserve Bank (SARB) showing a further slump in credit demand.

Growth in demand for credit by the private sector slowed to 3.98 percent year-on-year in June, from 5.70 percent in May, the SARB said.

June's figure was a five-year low and below economists' forecasts.

The SARB also released money supply figures for June which showed that growth in the broadly defined M3 measure of money supply slowed to 6.04 percent from a revised 7.86 percent in May.

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