The German credit market remained on an upward trajectory in the third quarter. Loans to companies and private households have risen noticeably compared with the level of the spring quarter as well as the same quarter of the previous year. Most importantly, the corporate client sector is increasingly evolving into the growth engine of the German credit market. From the end of September 2016 until the end of September 2017, lendings to companies grew by 4.1 percent. That’s the strongest growth since 2009.
Another reason for this is the acceleration in German economic activity. Compared with the spring, gross domestic product has risen by 0.8 percent. Investment in particular is gathering speed, driven especially by machinery and equipment investment. With borrowing demand having for a long time been fuelled exclusively by housing construction investment, contributions are now coming from machinery and equipment investment, creating a broad foundation on which credit markets can develop. Well-utilised company capacities, a renewed increase in foreign demand and continuously benign framework conditions will also ensure that this trend continues in 2018.