New figures from the Central Bank show that lending growth slipped again in November, with the adjusted annual rate of private sector credit growth dropping to 17.1% from 18.5% in October. This is the lowest annual rate since October 2003.
The Central Bank says that total outstanding private sector credit rose by €6 billion last month to €372.7 billion.
The slowing housing market was also evident with the rate of increase in residential mortgages falling to 14.2% last month from 15.1% the previous month.
This is the 16th month in a row in which the increase in mortgage lending has declined and November continued the trend of about a percentage point fall per month since the start of the year.
Outstanding residential mortgages increased by €1.3 billion last month to €138.5 billion. The Central Bank says the average monthly increase in the year to date is €1.4 billion, well below the average monthly increase of €2 billion the same time last year.
Today's figures also reveal a further moderation in the adjusted annual growth rate in non-mortgage credit. This fell from 23.4% in October to 21.6% in November.
New spending on credit cards was €28m lower in November than October, but repayments also fell by €84m.
Commenting on today's figures, Ronnie O'Toole, chief economist at National Irish Bank, said they are the last monthly figures before the 2008 Budget reforms were announced and will be the baseline against which any change in the residential market will be judged.
'The cumulative impact of the stamp duty reform, increase in mortgage-interest relief and social housing programme represent a significant fillip to the market. Applications for planning permissions have strengthened since Easter, indicating a long term confidence in the market,' he added.
