It’s hard to think that the economy is going into any kind of recession with numbers like these. For the second straight month we just got a HUGE number on consumer credit
Cnosumer credit expanded by $19 billion in December. That’s far more than the $7 billion that was expected by economists.
Revolving consumer credit (credit cards) grew by $4.1 billion sequentially, and is basically flat from last year again (up barely).
One more point on this: A lot of people think that US consumer have too much debt, and that a big number here is “bad” and we could imagine that being true. But if we’re talking about cycles, and whether the economy is in rebound or recession mode, re-expanding credit is OBVIOUSLY what you want to see.
Read the full announcement here.
This chart from Reuters’ Soctty Barber basically tells it all.
It’s a very slow week economic data-wise, but this is the biggie…
Consumer credit for December comes out at 3:00 PM ET.
Analysts expect $7 billion worth of new credit for the month. That’s down from $20.3 billion in the month before.
Remember, last month REVOLVING consumer credit registered flat year over year growth for the first time since the bust.
We’ll have the number here LIVE.
Here’s that revolving consumer credichart from last month.