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Wednesday, October 08, 2008

August Consumer Borrowing Falls

Note: The teeney-boppers are back in the comments. Be aware that a lot of the comments have fake screen ID names, running through various redirects. You can draw your own conclusions regarding the good those people are doing for their preferred political wing.

The release yesterday can be found here.
                                 2003    2004    2005    2006    2007     Q1 r    Q2 r    Jun r   Jul r   Aug p
-----------------------------------------------------------------------------------------------------------------
Percent change at annual rate 2
Total 5.3 5.5 4.3 4.5 5.6 5.2 4.1 4.1 2.4 -3.7
Revolving 2.9 3.8 3.1 6.1 7.4 7.6 3.5 3.4 5.0 -0.8
Nonrevolving 3 6.7 6.4 4.9 3.6 4.5 3.7 4.4 4.6 0.9 -5.4

A good article giving context.

As the wave of borrowings recedes, actual spending power will also recede. I don't think that borrowing can return to previous levels, so US consumer spending will reset to lower levels until debt is worked off, written down or discharged. The same is true for the UK and a number of other countries.


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