Wednesday, 22 of November of 2017

Economics. Explained.  

Commercial and Industrial Loans

May 24, 2017

Commercial and industrial loans, which are more commonly called “business loans”  climbed at a 5.6% growth rate in April after having declined at an 8.3% pace in March (the light green bars on the left scale).   The year-over-year growth rate has snow lipped to a 2.6% pace  (green line on the right scale).

Total loan growth has been slowing for all types of bank lending — consumer , real estate, and commercial and industrial loans.  Given that the slowdown began right after the election it is possible that it is connected to the uncertain fate of Dodd-Frank legislation under Trump.  Right now with total loans having grown 4.1% in the past year and nominal GDP growing at that exact same pace, loan growth is not slowing the economy.  But if the extreme slowdown in recent months should continue it could have that effect.

Stephen Slifer


Charleston, SC

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