July has seen a significant upturn for commercial finance, erasing June's declines.

New figures from the Australian Bureau of Statistics indicate a 6.1% seasonally-adjusted increase for commercial finance in July. The result follows a 6.1% downturn in June. In trend estimates, commercial finance was up 0.9% for the month.

The result comes following predictions of a surge in commercial finance. Jonathan Street, executive director of commercial lender Think Tank, told Australian BrokerNews earlier this month that "pent-up" demand for commercial credit would "release" either late this year or early next year.

Likewise, aggregator PLAN Australia forecast a "huge surge" in commercial loans as brokers began eyeing business credit as a potential revenue stream.

The ABS figures have also signalled a modest upturn for housing finance. The total value of owner occupied housing loans rose a seasonally-adjusted 1.4% in June.