Growth in credit card advances outstanding slowest on record in May

May saw the slowest year-on-year growth in total credit card advances outstanding on business and personal cards together since records began in 1982, figures released by the Reserve Bank of New Zealand (RBNZ) show. There was also the biggest drop in credit card advances outstanding between April and May for any year. RBNZ data also showed the unadjusted amount financed using locally-issued credit cards in New Zealand in May fell 5.9% from May 2008. This was the first year-on-year drop for a May month since this particular data series began in 1994. Seasonally adjusted, the amount financed using domestic cards in New Zealand fell 2.6% in May from a year ago, its seventh consecutive year-on-year decline. November was the first month to show decline since the series began (see fifth tab on chart). Year-on-year growth for total advances outstanding in May was 1.23%, to NZ$5.175 billion. Total advances outstanding was down NZ$65 million from April 2009 (which saw year-on-year growth of 1.83%). The next biggest April to May drop was NZ$42 million in 2003, while the drop in 2008 was NZ$34 million. The year on year growth in total advances outstanding has been steadily slowing since it hit 8.67% in September 2008. Separate figures for personal credit cards show that the interest bearing proportion of advances outstanding in April remained above 70% for the third month in a row, at 70.45% of total advances. However this was down slightly from March and a recent high of 71.69% in February. There was only fractional growth in credit limits offered in May on business and personal cards together.