The Lehmann Letter (SM)
Yesterday the Federal Reserve released a very encouraging report on consumer borrowing:
Consumer credit grew by $255.6 billion in March at a seasonally adjusted annual rate. Take a look at the chart: This is far above the typical increase of approximately $100 billion. You will also notice considerable noise in the data. The numbers fluctuate sharply from month to month. But this is a good, strong report that should encourage optimism about consumer spending.
Tomorrow's letter will look at new-vehicle sales. They rely heavily on consumer credit for their financing.
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