US Consumers Spending Less, Much Less

US Consumers Spending Less, Much Less

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)

Stay tuned…

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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