U.S. Outlook: Consumer credit spigot remains open
Solid gains in consumer credit growth are an integral part of our sanguine outlook for near-term consumer spending.
For more details, see highlights of my report below, followed by a link to the full U.S. Outlook, delivered on March 25.Key observations:
- Growth in non-revolving credit, mostly auto and student loans, remains robust.
- Despite increases in consumer credit outstanding in recent years, household debt has been brought under control in the aggregate, giving the green light to additional consumer borrowing in the future.
- Rising personal income and the low interest rate environment have been instrumental in alleviating the financial burden of U.S. households during this expansion.
- The only area of concern that remains is the large buildup in student loan debt.