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.
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?
"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.
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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