Consumer Credit drops sharply, again…
Update: 4/8: Retail sales came in higher than expected, and so did weekly jobless claims..Easter fell in March this year, and if I am any indicator, lots of folks spent a bit extra on Easter candy to brighten what has been a dark Spring economically…I still do not believe there is a consumer led recovery in the cards…we have no credit and no jobs, it is math even I can do…
Yeah that much vaunted ‘recovery of the consumer’, is a mirage IMO. There is no credit, there are no jobs, therefore there is no recovery in consumer spending on the horizon, period.
Ain’t nothin’ goin on but the rent…
CalculatedRisk brings us the data from the FED that CNBC and the WSJ ignored-
The Federal Reserve reports:
Consumer credit decreased at an annual rate of 5-1/2 percent in February 2010.
Revolving credit decreased at an annual rate of 13 percent, and nonrevolving credit decreased at an annual rate of 1-1/2 percent.
Consumer credit is off 4.0% over the last 12 months.
Consumer credit has declined for 12 of the last 13 months – and declined for 13 of the last 14 months and is now 5.2% below the peak in July 2008….