US Consumers Spending Less, Much Less
$DIA, $SPY, $QQQ, $VXX
American consumer credit rose much less than forecast in December, for the smallest annual increase in household borrowing since Y 2013.
The $14.2-B advance last month followed a revised $25.2-B jump in the prior month, the Fed numbers showed Tuesday. For all of Y 2016, borrowing rose 6.4%.
Consumer debt slowed in December by a smaller advance in credit-card balances.
However, Americans, emboldened by a steady pace of hiring and cheap financing, were still more willing to borrow for big-ticket purchases such as cars.
The median forecast of economists surveyed called for a $20-B increase in total consumer credit, with estimates ranging from $10.6 to 26-B. The November reading was previously reported as an advance of $24.5-B.
Revolving debt, which includes credit cards, rose by $2.4-B following an $11.8-B increase, the Fed’s report showed.
Non-revolving debt, such as that for college tuition and the purchase of vehicles and mobile homes, rose $11.8-B after a $13.4-B increase.
Lending by the federal government, which is mainly for student loans, rose by $9.6-B in Q-4 before adjusting for seasonal variations. Loans for motor vehicles climbed $12.4-B.
The Fed’s consumer credit report does not track debt secured by real estate, such as home equity lines of credit and home mortgages.
Tuesday, the major US stock market indexes finished at: DJIA +37.87 at 20090.29, NAS Comp +10.67 at 5674.22,, S&P 500 +0.52 at 2293.08
Volume: Trade on the NYSE came in at 977.5-M/shares exchanged.
- NAS Comp +5.4% YTD
- S&P 500 +2.4% YTD
- DJIA +1.7% YTD
- Russell 2000 +0.3% YTD
|HeffX-LTN Analysis for DIA:||Overall||Short||Intermediate||Long|
|Neutral (0.24)||Neutral (-0.01)||Bullish (0.32)||Bullish (0.40)|
|HeffX-LTN Analysis for SPY:||Overall||Short||Intermediate||Long|
|Bullish (0.26)||Neutral (0.23)||Bullish (0.35)||Neutral (0.19)|
|HeffX-LTN Analysis for QQQ:||Overall||Short||Intermediate||Long|
|Very Bullish (0.54)||Very Bullish (0.62)||Bullish (0.48)||Very Bullish (0.53)|
|HeffX-LTN Analysis for VXX:||Overall||Short||Intermediate||Long|
|Bearish (-0.39)||Bearish (-0.49)||Very Bearish (-0.70)||Neutral (0.01)|
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