The credit indicator C2, August 2008

Household gross domestic debt totalled NOK 1 829 billion at end-August. The twelve-month growth continued to fall this month to 9.1 per cent, compared with 9.4 per cent to end-June. This was the lowest twelve-month growth since February 2000.

The lending growth still being higher than 9 per cent may be related to the tendency that households to a greater extent than before have the possibility to postpone repayments on their loans in financial enterprises. Thus, the lending growth will continue to be high, even though the growth for new loans decreases.

High, but declining growth in non-financial enterprise debt

Non-financial enterprise gross domestic debt amounted to NOK 1 136 billion at end-August. The twelve-month growth at end-August was 19.4 per cent, down from 20.7 per cent the previous month. Since December 2007, the non-financial enterprises have been the main contributor to the twelve-month growth in the credit indicator C2.

Converted to annual growth rate, the non-financial gross debt for the period June-August increased by 16.4 per cent compared with the three consecutive months. This growth rate was 19.3 per cent previous month. The fact that the growth based on the three-month moving average is lower than the twelve-month growth indicates that the twelve-month growth will continue to fall.

The growth in non-financial enterprise money supply has been substantially reduced during the last months; see the money supply M2 statistics.

Growth rates affected by portfolio shifts

69 per cent of the general public gross domestic debt of NOK 3 177 billion at end-August consists of bank loans. The twelve-month growth in bank loans decreased from 10 per cent to end-July to 9.4 per cent to end-August, and the twelve-month growth in credit from mortgage companies fell from 44.8 per cent to 43.8 per cent in the same period. The growth rates are affected by shifts between bank loans and credit from mortgage companies. This is due to the new legislation on covered bonds.