Today the Fed released its latest Consumer Credit Report. A few items...
- On a seasonally adjusted basis, Revolving Credit increased at a 9.2% annual rate. Non-revolving increased 5.2%. Total consumer credit increased 6.7%.
- Without seasonal adjustments most types of credit remained relatively flat.
This leads to a few interesting conclusions. First, in March Consumer Credit historically decreases. I'm assuming that this is because tax returns start rolling in and consumer spending slows slightly. So in a month that it was supposed to decrease by about 9.2% annually - it remained flat - showing that those who paid off either did not pay off or were off set by the people who took on more - Not a good sign for the American Consumer who I mentioned earlier is addicted to debt. It is however a good sign for corporate earnings who rely on this addiction.
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