Annual credit growth has halved as businesses take a cautious view of the economic outlook.
Credit data provider Veda's quarterly business credit demand index rose by an annual 1.5 per cent rate in the March quarter compared with 3 per cent as of the previous three months.
The index has historically proven to be a lead indicator of how the overall economy is performing.
The latest data indicates a slowing annual rate of growth in business credit applications, which suggests caution around the economic outlook, Veda general manager Moses Samaha says.
It points to a slight easing in economic growth from the 3 per cent pace recorded in 2015.
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Business loan applications slowed to 3.2 per cent in the March quarter and asset finance eased to 3.3 per cent, while trade credit fell by 1.7 per cent.
