According to new Central Bank data released yesterday, mortgage lending contracted by 2.5% in the year to May.

This represents the slowest pace of decline since 2010. Corporate lending fell by 8.2% in the year to May. So far in 2015, mortgage lending has contracted by €1.2bn, other personal lending by €314m and corporate lending by €1.7bn.

According to Davy Stockbrokers, "Despite the improvement in consumer confidence, there is little sign of Irish households reducing their savings and taking on new debt. In the UK, consumer credit is expanding at 7% per annum, spurred on by 0% finance car loans, in-store credit and pay day lenders.

Irish households have been more conservative. Irish consumer credit fell by 3.4% in the year to May to €16.4bn, less than half the €35.8bn in early 2009. Not surprisingly, credit card debt has contracted especially sharply, down 16.0% in the year to May."

Source: www.businessworld.ie