Friday, June 8, 2012

Consumer Credit Continues Climb

The Lehmann Letter (SM)

Consumer credit continues to climb out of its recession trough::

The Fed reported consumer credit grew by $78.2 billion in April. (This includes credit cards, auto loans, home-appliance and home-furnishing financing, student loans, etc., but excludes real-estate financing.) That’s consistent with the progress evident in the chart.

Consumer Credit

(Click on chart to enlarge)

(Recessions shaded)

Households had retreated into a protective crouch: Conserving liquid assets, shedding debt and reducing large, postponable purchases. Now consumers are taking the first tentative steps out of that crouch. They are doing some borrowing and buying.

If only that extended to housing………

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© 2012 Michael B. Lehmann

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