Friday, November 6, 2009

Consumer Credit data just released

Well it's good AND bad, I suppose.

With consumer spending estimated at 70% of our country's GDP, we'd better hope it continues. That said, who is going to chastise Americans for upping their savings rate and eschewing more debt?

Total consumer credit declined $14.8billion from August 2009 to September 2009, a nearly 50% greater contraction than expected. That does not bode well for future spending. While some might point out that maybe the consumer is getting ready to deploy all that credit, remember than many banks have been forced to reduce untapped lines of credit.

The market took the report in stride, and is still essentially flat on the day.

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