by It’s been decelerating all year with a year end move up that’s likely to be reversed as personal income growth continues to be very low: Highlights Consumer borrowing increased in December, up .4 billion vs an upwardly revised .0 billion in November which is the largest monthly increase since a break in the series 7 years ago. Revolving credit, a component that tracks credit-card debt, rose a sizable .1 billion following a November spike of .0 billion. On an annualized basis, revolving credit rose at a 6.0 percent pace in December. Non-revolving credit rose at a 5.7 percent pace in the month and in month-to-month dollar terms rose .3 billion. Gains in this component, which is nearly triple the size of the revolving component, were split between student
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WARREN MOSLER writes Consumer sentiment, real retail sales, industrial production, wages
WARREN MOSLER writes New manufacturers orders, vehicle sales, unemployment claims, rents, oil prices
WARREN MOSLER writes Saudi price hike, private payrolls, new hires, corporate profits
WARREN MOSLER writes Pending home sales, Durable goods orders, oil rigs and production
It’s been decelerating all year with a year end move up that’s likely to be reversed as personal income growth continues to be very low:
Highlights
Consumer borrowing increased in December, up $18.4 billion vs an upwardly revised $31.0 billion in November which is the largest monthly increase since a break in the series 7 years ago. Revolving credit, a component that tracks credit-card debt, rose a sizable $5.1 billion following a November spike of $11.0 billion. On an annualized basis, revolving credit rose at a 6.0 percent pace in December.
Non-revolving credit rose at a 5.7 percent pace in the month and in month-to-month dollar terms rose $13.3 billion. Gains in this component, which is nearly triple the size of the revolving component, were split between student loans and especially vehicle financing.
The gain for revolving credit does suggest that those shoppers who are cash strapped turned to their credit cards to do their share to fund the holiday shopping season.
To my point about a general ‘mania’ that seems to be fading:
Bitcoin becomes just like everything else on Wall Street as correlation with stocks jumps to 2-year high
The notion that higher rates from the Fed cause higher inflation seems to be getting a bit of a hearing;
Neo-Fisherism: A Radical Idea, or the Most Obvious Solution to the Low-Inflation Problem?
