Light at the end of the tunnel for consumer credit - but some way to go for businesses yet

Centrix's latest Credit Indicator report shows a seasonal climb in monthly consumer arrears - which aligns with what's expected at this time of the year.

But these are down three percent year-on-year for the first time since December 2021.

Managing Director Keith McLaughlin says as mortgage interest rates come down, consumer confidence will tick up - but it will take a while for business to feel the effects.

He says businesses have been hit quite hard - and will continue to feel this until consumer confidence flows into actual spending.