Jan Consumer Credit unexpectedly rises
Jan Consumer Credit outstanding rose by $5b seasonally adjusted vs an expected decline of $4.5b. It is the first increase since Jan ’09 and was solely led by a $6.6b rise in nonrevolving (mostly auto’s) credit. Revolving credit (mostly credit cards) outstanding fell by $1.7b. On a non seasonally adjusted basis, consumer credit fell from the holiday induced jump in the Nov and Dec timeframe but it didn’t fall as much as expected and its why the seasonal adjustment showed an increase. Because the overall gain was led by mostly auto’s, its tough to extrapolate to a pick up in credit card usage but there is no question retail sales of late have surprised to the upside. This is notwithstanding the drivers of consumer spending, income growth, jobs and credit all being obviously constrained.
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March 5th, 2010 at 6:04 pm
“It is the first increase since Jan ‘09 and was solely led by a $6.6b rise in nonrevolving (mostly auto’s) credit.” Credit (monetary) contraction?
March 5th, 2010 at 6:11 pm
If retail sales are so great, then why are state sales tax receipts down YOY, in nearly every state?
March 6th, 2010 at 11:37 am
@Purewater:
California’s retail sales tax receipts were +100% YOY.
http://www.sco.ca.gov/Files-ARD/CASH/fy0910_jan.pdf
March 6th, 2010 at 12:16 pm
@f411: And where exactly do you see that in the numbers?