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Forget stocks, animal spirits rising where they matter most

A steady increase in lending to small businesses at online lender Prospa is a welcome sign of renewed confidence in the engine room of the economy. 

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We interrupt this broadcast of the great GameStop drama of 2021 for some important news from the real economy – Australia’s small and medium businesses are borrowing and investing again.

While it’s easy to get dazzled by surging sharemarket valuations and flash mob attacks on Wall Street short-sellers, the rise of real-world return of animal spirits is a great sign that our economic recovery is on track.

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James Thomson is senior Chanticleer columnist based in Melbourne. He was the Companies editor and editor of BRW Magazine. Connect with James on Twitter. Email James at j.thomson@afr.com

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    Original URL: https://www.afr.com/chanticleer/forget-stocks-animal-spirits-rising-where-they-matter-most-20210128-p56xja