US Consumer Finance Update
Updated: Sep 28, 2022
The Fed reported a $42 billion growth in consumer borrowing in Feb 2022.
Consumers seem to pay down balances more slowly. This could be due to the higher price pushed by inflation. More data points would paint a more clear picture.
Meanwhile, the deposit balance at the largest banks is projected to go down 6% this year.
However, consumers are still in a good spot.
The last two years saw a 35% increase in bank deposits, with strong stimulus measures and suppressed consumption.
Yesterday, the U of Michigan consumer confidence index posted a surprising uptick: up 6.3 points M/M to 65.7