Consumers are still in full-on saving mode according to the latest Fed data on consumer credit:
Reuters: Total U.S. consumer credit dropped by a bigger-than-expected $14.80 billion in September, Federal Reserve data showed on Friday, indicating households prefer to reduce debt and are still reluctant to spend.
September consumer credit outstanding fell at a 7.19 per cent annual rate to $2.46 trillion. August’s figures were revised to show a $9.86 billion drop, previously reported as a $12 billion fall.
Given the massive consumer bubble we’ve come off of, maybe some old fashioned debt reduction is still in order. Yet the trend definitely looks rough. Feel free to check out the full release below.