Sunday, 18 of February of 2018

Economics. Explained.  

Consumer Loans

January 3, 2018

Consumer loans rose 14.0% in November after having climbed 13.2% in October and 7.2% in September (the purple bars).  Over the course of the past year consumer loans have climbed by 5.5% (in red) but given the performance in recent months it appears to be accelerating.

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 3.7%. Given that the recent slowdown began right after the election it may have something to do with uncertainty regarding the fate of Dodd-Frank legislation under the Trump Administration.  We do not expect this slowdown to be particularly long lasting  and, indeed, with growth in the past three months of 5.1%, 6.7% and 6.0% bank lending appears to be rebounding.

Stephen Slifer


Charleston, SC

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