Consumer-Credit Growth Isn’t All Good News

Consumer credit continues to expand at a healthy pace and defaults remain low; it is too easy for banks to become complacent

American Express credit cards.Consumer credit, excluding mortgages, leapt by an annualized 10% in March, according to the Federal Reserve.PHOTO: REUTERS

By
Aaron Back
Updated June 6, 2016

Consumers are stepping up their borrowing, an encouraging sign for near-term economic growth. But as the credit party heats up, there are emerging risks for lenders.

Consumer credit, excluding mortgages, leapt by an annualized 10% in March, by $29.7 billion, according to Federal Reserve data. Consensus forecasts for April’s figure, due Tuesday, are for a more subdued but still solid $18 billion.

Read the full article here.

Share this article