Tuesday, 26 of September of 2017

Economics. Explained.  

Consumer Loans

July 25, 2017

Consumer loans rose 1.4% in June after having risen 1.5% in May (the purple bars).  Over the course of the past year consumer loans have climbed by 4.5% (in red).

Indeed, since the election bank lending of all types — business loans, mortgage loans, and consumer loans have all slowed dramatically.  During the past year such loans have climbed 3.6%. Given that the recent slowdown began right after the election it may have something to do with the fate of Dodd-Frank legislation under the Trump Administration.  We do not expect this slowdown to be particularly long lasting, but it needs to be watched.  With 3.6% growth during the past year it is a shade less than growth in nominal GDP (4.1%) so it is not yet slowing the rate of growth in the economy, but if the extreme slowdown in recent months should continue that could present a problem.

Stephen Slifer

NumberNomics

Charleston, SC


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