The Federal Reserve Consumer Credit Report shows consumer credit rose $38 billion in April following a revised $47.4 billion jump in March.
The Fed originally reported $52.4 billion for March.
Consumer Credit
Revolving Consumer Credit
That amusing chart puts a bit of perspective on these huge percentage increases in revolving credit.
The numbers in green are months in which Congress handed out free money stimulus.
Revolving credit just now hit the pre-pandemic level.
Q: Where’s that alleged cash supporting consumption?
A: It went to pay down balances.
Consumer Burn Out?
Correcting as I misread initially as the old print of 1.3% when it’s down to 0.9%
Average the first two quarters, you get to -0.5%
Now, tack on the mammoth 4-month $134.9B consumer credit growth through April
Finally, make the case US consumer won’t burn out by the end of June https://t.co/Ejr0T5fjbV
— Danielle DiMartino Booth (@DiMartinoBooth) June 7, 2022
“Tack on the mammoth 4-month $134.9B consumer credit growth through April. Make the case US consumer won’t burn out by the end of June.”
Burn out by the end of June or already?
The Fed revised March lower by $5 billion. I anticipate more negative revisions.
US Balance of Trade Improves the Most on Record (Guess What That Means)
For trade discussion, please see US Balance of Trade Improves the Most on Record (Guess What That Means).
Target Warns Second Time of Weaker Profit, Bloated Inventories, and Slumping Demand
Target said inventory rose 43% as demand for outdoor furniture, small appliances and some electronics declined faster than expected.
Note that Target Warns Second Time of Weaker Profit, Bloated Inventories, and Slumping Demand
And weakness is not just in consumer goods.
New Home Sales Plunge 22.5% In April, 16.6% From Deep Negative Revisions
New home sales have peaked this cycle and the bottom is nowhere in sight.
For discussion, please see New Home Sales Plunge 22.5% In April, 16.6% From Deep Negative Revisions
Recession is immanent.
This post originated at MishTalk.Com.
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Mish
are rightly angry about inflation. A strong labor market is not enough
reason to celebrate. But, we are coming out of, not going into the
hurricane.
Mortgage applications decreased 6.5 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending June 3, 2022. This week’s results include an adjustment for the Memorial Day holiday.
The Market Composite Index, a measure of mortgage loan application volume, decreased 6.5 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 17 percent compared with the previous week. The Refinance Index decreased 6 percent from the previous week and was 75 percent lower than the same week one year ago. The seasonally adjusted Purchase Index decreased 7 percent from one week earlier. The unadjusted Purchase Index decreased 18 percent compared with the previous week and was 21 percent lower than the same week one year ago.
“Weakness in both purchase and refinance applications pushed the market index down to its lowest level in 22 years.”