Consumer Credit Increases Sharply

May 9, 2016 at 8:41 am 2 comments

 The economy continues to look great on paper.  If you’ve seen a spike in demand for consumer credit, you’re not alone.  The Federal Reserve reported on Friday that consumer credit increased at an annual rate of 10 percent in March, a sharp rise that confounded the expectations of economists. 

The Fed reports that credit unions continued a steady increase of consumer lending so far this year.  The amount of consumer credit lent out in March by credit unions increased to $350.6 billion.  Incidentally, the Federal Government is estimated to have held $986.2 billion in consumer debt thanks to student loans. 

Earlier in the day, the Department of Labor reported total non-farm employment increased in April by 160,000 and that the unemployment rate remained steady at 5%.  The jobs performance was a bit lower than economists had expected.  The number of long term unemployed declined by 150,000 but continue to make up close to 26% of the unemployed.  If you look at the demographic breakdown, the unemployment rate for Hispanics increased to 6.1% in April, while other groups largely remained unchanged.  For instance, the unemployment rate for African-Americans remained at 8.8%, more than double that of Whites (4.3%).

I had some family over last night and we were all talking about how the economy just doesn’t seem as strong as the statistics say it is.  I find it hard to believe that a truly healthy economy would be fertile ground for the nostrums offered by Mr. Sanders and Mr. Trump.  And, how many of you are seeing members as anxious to borrow money as they were in previous economic upswings?  Perhaps Friday’s consumer credit report is a turning point.  Or maybe just another blip in the more general economic malaise.

Entry filed under: econony, General. Tags: , .

Key NYS Legislation Starts to Move When a Member Surrenders Her Home Does It Belong To the Credit Union?

2 Comments Add your own

  • 1. Jamey  |  May 21, 2016 at 6:05 am

    Hello, i read your blog from time to timme
    and i own a similar one and i was just curious if you get a lot of spam responses?
    If so how do you reduce it, any plugin or anything you can recommend?

    I get so much lately it’s driving me insane so any support is very much

  • 2. Reva  |  October 11, 2016 at 9:05 pm

    Very good informаtion. Lucky mе I found yoսr blog Ƅy chance (stumbleupon).
    ӏ have boo marked it fоr later!


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

Trackback this post  |  Subscribe to the comments via RSS Feed

Authored By:

Henry Meier, Esq., General Counsel, New York Credit Union Association.

The views Henry expresses are Henry’s alone and do not necessarily reflect the views of the Association.

Enter your email address to subscribe to this blog and receive notifications of new posts by email.

Join 510 other followers