The sharp decline in the demand for credit during much of the second half of 2008 may be easing, new data suggests.
Applications for credit in December, accounting for personal loans, hire purchases and credit cards, were down 6% on December 2007, credit information provider Veda Advantage said on Friday.
That compared with an average year-on-year drop of 13% for the months of August through to November.
The latest figures indicated that, while talk of a recovery may be premature, the steep decline of the credit market in 2008 could be slowing up, the company said.
Veda Advantage managing director John Roberts said the four months leading up to December had been tracking quite badly. In November, in particular, credit applications were down 16% on a year earlier.
It would not be known whether December was an aberration until January's figures were available, Roberts said.
"Possibly the impact of lower fuel costs, lower interest costs, reduced taxation are reinstalling some consumer confidence."
