Consumer Credit Decelerates Further in January
|Consumer credit growth missed expectations in January, rising $8.8 billion. Revolving credit outright declined by $3.8 billion, the largest dip since December 2012.
Revolving Credit Falls in January
- Consumer credit growth was soft to start the year. The weakness was concentrated in revolving credit as nonrevolving credit growth posted a fairly average $12.6 billion increase.
- Consumer spending was a bit soft in January, which may explain part of the pullback. Higher rates, seasonal adjustment issues related to the holidays and some payback from recent strong gains may also have played a role.
Credit Card Delinquencies Remain Low
- In a separate recent release from the NY Fed, household debt delinquencies looked relatively healthy. In the revolving space, credit card delinquencies remain below pre-recession levels.
- Auto loan delinquencies have ticked up slightly, and student loan debt obligations remain a well-known challenge. If these credit quality trends continue, the pace of nonrevolving credit growth may slow as lending standards tighten gradually to compensate
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.