Wachovia reports consumer credit outstanding in May, showing a $3.-2 billion decline. Though this seems like a big amount, this drop is smaller than expected. Judging by the last three straight months of steep decline the expected drop for May was to be much greater. This was mainly due to increased amount of retail sales. What does this tell us? Perhaps we are seeing a little bit of a rebound in the economy.

The report also shows a 3.7 percent decline in revolving credit (e.g. credit cards) and a 0.3 percent decline in non-revolving credit (e.g. loans). This is, of course, consistent with the fact that consumers are not eager to spend money. Report shows that nominal personal consumption expenditures declined 1.8 percent year-over-year. This is the worst we have seen it since 1960 folks! Lenders have no choice but to cut credit lines and raise minimum payments.

Though the numbers are looking bad, there is no doubt that lower numbers still were expected. So what does this tell us? Is it good news or still bad news for our economy?

Post your comments and concerns below or email them to psingh@rempower.com!

This entry was posted on Friday, July 10th, 2009 at 8:16 am and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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