Nonrevolving credit posted its first negative reading since April of 2020. The net change is the lowest since November 2020. The Fed will be pleased with this report.
The Bloomberg Econoday consensus was for credit to rise by $20.0 billion.
Instead, the rise was $7.3 billion. In addition, the Fed revised May credit from $23.0 billion to $20.3 billion.
The consumer is clearly weakening as the lead chart shows.
Consumer Credit in Billions of Dollars
Those are nominal numbers. In nominal terms revolving credit, mainly credit cards, hit a new record high. Inflation adjusted numbers are much weaker.
Revolving Consumer Credit
Revolving consumer credit data from the Fed, Real (inflation adjusted) calculation and chart by Mish.
Resolving Consumer Credit Detail in Billions of Dollars
Adjusted for inflation, revolving credit is still less than the pre-pandemic high.
Real Consumer Credit
Real consumer credit is weakening, especially non-revolving. That reflects a slowdown in autos, housing, and student debt.
Heading Into Earnings Season, Let’s Discuss Actual Corporate Profits
In case you missed it, please see Heading Into Earnings Season, Let’s Discuss Actual Corporate Profits.
Record high credit card debt in conjunction with record high interest rates. I’m guessing this won’t end well.
Good guess, Kid.
If you appeared to be a good risk Joey “Peanuts” didn’t charge this much interest.
HA HA HA. dead on correct. stagflation. not a deflation note to be detected. got bell bottoms ?
down and down I go; round and round I go
In a spin, loving the spin I’m in
Under that old black magic called credit.
With student debt falling, how much longer will it be until there are mass layoffs in higher education?
Banks are tightening on the revolver and auto loans for the median income household ?
Maybe those student loan holders also cut back on their purchases, rent forbearance is gone and HELOC and new house loans for some were denied.
In a Global Debt Ponzi it is not good when credit takes a nose dive. Brace for impact.
Please post the monthly nonrevolving consumer credit change back 20 years
What you will see is that pre GFC in 2004 2005 and 2006, the change went negative a number of times
2004-2005-2006 were excellent years for Auto sales
Heloc money bought a lot of new Lexuses (Lexi?) and Mercedes and F150s in the mid 00s. Is heloc debt classified as revolving or non-revolving?
plural: lexises or lexes or lexeis
Lexels
Not going to point out that Mercedes isn’t a plural?
Helocs are revolving credit.
Real consumer credit is down but banks markup tripled. Bank’s earnings this week.
BRK.B Jun 26/28 PR.