Irish Private Sector Credit Falls In October

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Ireland's private sector credit fell 3.7% year-on-year in October, the central bank said Monday. Residential mortgages including securitised mortgages declined by EUR 162 million during October.

"It is hard to see demand for credit picking up until consumers feel comfortable that unemployment has peaked and employers are hiring again," Alan McQuaid, chief economist at Dublin-based stockbroking firm Bloxham said. The economist noted that the availability of credit will be critical if labor market conditions are to improve. "Year-on-year rates of change in demand for overall private sector credit and residential mortgages are likely to turn more negative."

Mortgages outstanding at end-October were EUR 147.8 billion. The annual rate of change in mortgage lending is now down to just 0.2%. Non-housing related household credit continued to decline during the month, and was approximately 18% lower on an annual basis in October, the central bank said.

Ireland's private sector credit fell 3.7% year-on-year in October, the central bank said Monday. Residential mortgages including securitised mortgages declined by EUR 162 million during October. (Market News Provided by RTTNews)