Consumer credit spree continues

By BRIAN FALLOW

WELLINGTON - The level of credit-check inquiries to Baycorp shows little sign that consumers are losing their appetite to borrow and spend, despite rising interest rates.

After a slower start to the year, the number of credit-check inquiries from the consumer and retail credit sector - a good pointer to consumer spending - bounced back strongly (9.1 per cent) in February before easing 6.5 per cent in March.

Baycorp general manager Paul Stewart said: "Overall the trend is clearly upward, with the number of credit inquiries for the first quarter 5.4 per cent higher than the last quarter of 1999."

However, the momentum has weakened. Growth in inquiries over the March quarter was half that experienced in the December quarter.

"But you would be hard-pressed to argue that the current economic recovery is stalling."

Mr Stewart said the rapid expansion in consumer credit last year had moderated only a little.

"Interest rates, which in some cases have risen by 2 per cent since early 1999, have not materially punctured consumers' appetite to borrow and spend."