U.S. Outlook: Consumer credit spigot remains open

Posted By Scott Anderson In Economic Outlook | No Comments

Solid gains in consumer credit growth are an integral part of our sanguine outlook for near-term consumer spending.

Graph showing the dramatic rise in student loan debt in last 15 years [1]The Federal Reserve’s latest consumer credit report shows total outstanding consumer credit at an all-time high in January, up 6.5% from a year ago.

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.
Click here to read my full report. [2]

Article printed from Bank of the West: https://changematters.bankofthewest.com

URL to article: https://changematters.bankofthewest.com/2016/03/25/u-s-outlook-consumer-credit-spigot-remains-open/

URLs in this post:

[1] Image: http://blog.bankofthewest.com/wp-content/uploads/2016/03/graph_studentloandebt_032516.jpg

[2] Click here to read my full report.: http://blog.bankofthewest.com/wp-content/uploads/2016/03/BankoftheWest_USOutlook_03_25_16.pdf

Submit an Idea

[contact-form-7 id="32" title="Share An Idea"]

You are leaving the Bank of the West Change Matters site. Please be aware: The website you are about to enter is not operated by Bank of the West. Bank of the West does not endorse the content of this website and makes no warranty as to the accuracy of content or functionality of this website. The privacy and security policies of the site may differ from those practiced by Bank of the West. To proceed to this website, click OK, or hit Cancel to remain on the Bank of the West Change Matters site.