Skip to main content

Consumers Went on a Credit Card Spending Spree in March, Four Pictures

The Fed's Consumer Credit report last Friday was a doozy. Let's take a deep dive with pictures.
  • Author:
  • Publish date:
Consumer Credit details from the Fed, chart by Mish.

Consumer Credit details from the Fed, chart by Mish.

Consumer credit numbers via the Fed's G.19 Report came out last Friday.

The increase in $52.43 billion was the biggest jump in history by far. And most of it was credit card spending.

ZeroHedge commented Shocking Consumer Credit Numbers: Everyone Is Maxing Out Their Credit Card Ahead Of The Recession

His take was essentially my first reaction. Consumers exhausted their savings from three rounds of fiscal stimulus.

Consumer Credit Annualized Percent Change

Consumer Credit details from the Fed, chart by Mish.

Consumer Credit details from the Fed, chart by Mish.

On a percentage basis, revolving consumer credit jumped by 35.31%

Nonrevolving Consumer Credit 

Nonrevolving Consumer Credit 2022-03

Non-revolving consumer credit, primarily mortgages, did not blink an eye through the entire Covid period. 

Revolving Consumer Credit 

Revolving Consumer Credit 2022-03

That's the chart that gives room to pause. Despite massive jumps revolving debt has still not exceeded the pre-pandemic levels.  

Scroll to Continue

RECOMMENDED ARTICLES

It appears consumers used Covid stimulus to pay down credit cards and now are running up credit card debt at a record pace. 

This rate of growth is not sustainable to say the least. 

A recession is assured. 

Which One Of These Does Not Fit In ?

  1. S&P earnings estimates for 2022(e) have increased from $200.03 to $226.62 and 2023(e) have gone from $246.79 to $248.30. Earnings estimates jump 9.75% vs 2022.
  2. Fed hiking at the fastest pace since the 1980s
  3. CPI up 8.5% from a year ago
  4. 30-year mortgage rate 5.41% vs 3.12% a year ago.
  5. Just in time manufacturing morphs into supply hoarding
  6. War in Ukraine disrupting shipping channels
  7. European energy crunch
  8. Falling stock market
  9. Demand Destruction
  10. Recession

For discussion, please see S&P 500 Earnings Estimates for 2023 Rise, It Won't Happen

Also note An Official Denial Suggests Stagflation is Now the Base Case for Europe

ECB’s President Christine Lagarde says "Stagflation Isn’t the Base Case." I suggest that should just about seal it. Include the US as well.

This post originated at MishTalk.Com.

Thanks for Tuning In!

Please Subscribe to MishTalk Email Alerts.

Subscribers get an email alert of each post as they happen. Read the ones you like and you can unsubscribe at any time.

If you have subscribed and do not get email alerts, please check your spam folder.

Mish