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Johannesburg - Credit demand by the private sector rose by 2.98% year-on-year in August, compared with a slightly revised 1.96% in July, Reserve Bank data showed on Thursday.
Growth in the broadly defined M3 measure of money supply accelerated to 4.38% year-on-year compared with 3.71% in July.
A Reuters poll showed expectations of private sector credit demand at 2.75% year-on-year in August. Money supply growth was seen increasing to 4.55% on the year for August.
"The credit number is above market expectations, it's telling us that some demand is returning to the market... but when you look at inflation numbers yesterday there's low demand in the economy and low pressure on prices. So 2.98% is good news and we may see some consumer demand return to the market which is good news for economic growth," said Freddie Mitchell, Efficient Group economist.
