Tag Archive for ‘household balance sheets’

Soaring Revolving Credit May Not Indicate Strengthening Consumer Demand

The Federal Reserve Board reported that the total amount of consumer credit outstanding grew by a seasonally adjusted annual rate of 8.3% to $2.8 trillion in May, as debt associated with student and car loans, as well as credit card debt rose. In April, consumer credit outstanding rose by 4.6%. The month-over-month increase in consumer credit outstanding reflected acceleration in… Read More ›

Measures of Consumer Confidence Show Mixed Results but Similar Conclusions

Measures of consumer confidence were mixed in June. According to Thomson Reuters and the University of Michigan, the Consumer Sentiment Index was basically unchanged from May, falling by 0.5% on a monthly seasonally adjusted basis to 84.1. The final reading of consumer sentiment was revised up from the preliminary reading of 82.7 that was released earlier in the month. Meanwhile,… Read More ›

Household Balance Sheets: Continuing Fiscal Cliff Impact

During the first quarter of 2013, household balance sheets improved with increases in home values and reductions in mortgage debt, thereby boosting household net worth. These are favorable improvements that will help housing demand in 2013. In particular, over the last five quarters household real estate values have risen by more than $2 trillion. Since the end of the Great Recession such developments have typically… Read More ›

Growth in Consumer Credit Accelerates

According to the Federal Reserve Board, growth in the amount of consumer credit outstanding, this includes outstanding credit extended to individuals for household, family, and other personal expenditures, excluding loans secured by real estate, accelerated in April. According to the release, the amount of consumer credit outstanding increased at a seasonally adjusted annual rate of 4.7% in April, 1.1 percentage… Read More ›

Student Loans Conditions Vary Across the Country

Student loan debt reflects the cost of an investment in human capital. The typical return on this investment is characterized by both higher wages and a more stable employment. College graduates and those with some college experience tend to have higher wages and lower unemployment rates than their counterparts with a high school degree or less. However, failure to repay… Read More ›

Rental Price Growth Continues to Exceed Overall Inflation

The Bureau of Labor Statistics reported that its measure of consumer prices declined in April. According to the Consumer Price Index – Urban Consumer (CPI), prices faced by consumers declined by 0.4% on a month-over-month seasonally adjusted basis. This is the second consecutive monthly decline for the index. In March, consumer prices fell by 0.2%. Consumer prices have experienced three… Read More ›

Measures of Consumer Confidence Mixed

Measures of consumer confidence were mixed in April. According to Thomson Reuters and the University of Michigan, the Consumer Sentiment Index fell by 2.8% on a monthly seasonally adjusted basis to 76.4. The final reading of consumer sentiment was revised up from the preliminary reading of 72.3 that was released earlier in the month. Conversely, the Conference Board reported that… Read More ›

Consumer Credit Expands

The total amount of consumer credit outstanding continues to climb. According to the most recent release by the Federal Reserve Board, the total amount of consumer credit outstanding expanded by seasonally adjusted annual rate of 7.8% in February to a seasonally adjusted level of $2.8 trillion. This is the eighteenth consecutive monthly increase in consumer credit outstanding. Over this period,… Read More ›

Household Balance Sheets: Fiscal Cliff Impact

During the fourth quarter of 2012, household balance sheets improved with increases in home values and reductions in mortgage debt, thereby boosting household net worth. These are favorable improvements that will help housing demand in 2013. However, since the end of the Great Recession such developments have typically been associated with a decline in the personal savings rate. Due to the Fiscal Cliff, the data… Read More ›