The number of people wanting to borrow money is expected to keep falling

Centrix data shows lending demand in June was lower for the commercial and business sectors.

At the same time as the drop in lending, financial hardship and missed home loan payments are also down.

Managing Director Keith McLaughlin says it's the start of a tightening of the economy.

He says if economic indicators continue the way they are -- we could see three to six months of increased arrears and low lending.