In August, the total amount of loans for house purchase grew, year-on-year, less than it had grown in July. It’s the first slowdown since October 2020.
Mortgage lending in Portugal recorded its first slowdown in almost two years in August. This news should be seen in light of the tightening of monetary conditions by the European Central Bank.
In that month, the total amount of loans for house purchase grew 4.6% in year-on-year terms. This is a slowdown of 0.2 percentage points which, although slight, is the first to be recorded since October 2020, the Bank of Portugal said.
In August, banks had contracted housing loans with individuals totaling €99.7 billion. The growth recorded represents a rise of €200 million compared to the end of July.
In consumer credit, the amount totalled €20.5 billion at the end of August. This is also an increase of €200 million in comparison to July. But in this case there was an acceleration in the year-on-year growth rate, from 5.5% last month to 5.9% in August.
As for deposits by individuals, there was a reduction of €1.3 billion, but a growth of 6.8% compared to August 2021, to 181.4 billion. Deposits tended to shrink in August, recalls the Bank of Portugal, a period marked by summer holidays. The reduction was mainly in demand deposits.
Credit to companies also slows down
From households to companies, the Bank of Portugal reports that the amount of loans was €76.4 billion at the end of August. Loans to companies grew 1.5% year-on-year, which is 0.1 percentage points less than the growth recorded in July.
“This deceleration was more expressive in small and medium-sized companies and in companies in the manufacturing and accommodation and catering sectors. Loans granted to large companies and companies in the trade and transport sectors accelerated,” the supervisor’s statement said.
Finally, corporate deposits increased by €1.5 billion in August to 64.8 billion. It is a growth rate of almost 10%, but “represents a deceleration for the fifth consecutive month”.
Original Story: ECO | Flávio Nunes
Photo: Photo by Miguel Saavedra in FreeImages.com
Edition and translation: Prime Yield