U.S. Consumer Borrowing Up in July 2016 – Excellent Future Outlook

With the sky falling mentality of the news and other public officials we tend to bypass the fact’s as stated by the people who are paid to gather real economic data.

The U.S. Economy is rebounding and will continue to rebound.  If you find yourself outside of the rebounding benefits you need to look at yourself and determine if your job or previous job was in the old market economy.

Don’t blame other people for the changes that normally happen in a developing economy.  We are becoming a High Tech/Service Economy.  This will enable you to live where you want to live and make as much money as you want.

Stop being closed minded and looking back at the past and applying it to present economical conditions.  I submit this article below as proof that the economy is growing.


U.S. consumer borrowing picked up in July, bolstering expectations that consumer spending will remain a key factor in accelerating economic growth.

Outstanding consumer credit rose by a seasonally adjusted $17.7 billion in July, the Federal Reserve said Thursday. Economists had expected a $16.0 billion rise in July.

Adding to the sense of strength, a slowdown in June was revised to reflect a rise. The Fed’s data now show a $14.5 billion gain in June, up from the prior estimate of $12.3 billion, which was the slowest pace in almost four years.

In the second quarter, real consumer spending rose at a 4.4% annual rate. Economists expect spending to moderate somewhat in the third quarter but remain strong.

Consumer credit rose at a 5.8% seasonally adjusted annual growth rate in July, a pickup from June’s upwardly revised 4.8% pace. It is below the 7.8% rate seen in March, which was the fastest monthly pace this year.

In keeping with recent trends, nonrevolving credit outstanding, including student and auto loans, drove borrowing in July. This category rose at a 6.7% annual pace in July compared with June’s 2.4% growth rate.

The gain was mostly autos, however, as student loan growth was typically low in the month.

T.J. Connelly, head of research at Contingent Macro, said over the past year student debt has increased by $101.6 billion, to become 66.1% of total non-revolving credit.

Revolving credit outstanding, mostly credit cards, rose at a 3.5% annual pace in July, down from June’s sharp 11.5% gain.

The consumer debt-to-disposable income ratio, excluding student debt, has moved modestly higher to 18.9% from a trough of 17.7% in December 2012, Connelly said.