SINGAPORE - Bank loans fell for a 11th straight month in August as the sluggish economy continued to weigh on business activity and sentiment.

Overall, loans slipped to S$603.9 billion last month, down 1.6 per cent compared with the same month last year, due to a year on year decline in business lending.

On a month to month basis though, bank lending rose to a nine-month high in August, and was up 1.1 per cent from July's S$597.2 billion. This came on the back of higher month on month increases in loans to financial institutions and the construction sector.

Year on year, business loans fell 4.3 per cent in August to S$357.3 billion, the 12th straight month of decline, according to preliminary data released on Friday (Sept30) by the Monetary Authority of Singapore.

On a monthly basis though, business lending in August was 1.6 per cent higher than the S$351.8 billion loans in July.

Consumer loans, which have held up despite the gloomy economic outlook, rose to S$246.5 billion in August, up 2.6 per cent from the same month last year. They were buoyed by the contnued increase in mortgages, credit card interest payments and share financing.