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Record drop in lending in the U.S. |
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Expenditures of U.S. households may be too weak to contribute to learn from the recession of the world's largest economy. Banks and credit card issuers, exacerbated by the lending criteria, and Americans took to repay the debts in advance and, consequently, the value of new consumer lending fell in July to 21.6 billion dollars, or 10 percent., The annual level of 2.47 trillion.
There is no count on the consumer The central bank said in the same report that the total loans granted less by 15.5 billion dollars, while the Fed expected to decrease the amount of 10,3 billion dollars. In the case of consumer credit decrease was larger than expected by economists and July was the sixth consecutive month of decline in this segment. It's the longest such period of declining since 1991 Consumers now focus on repairing its finances and will continue to be very careful in these moods do not draw our economy out of recession - believes Ryan Sweet, senior economist with Moody's Economy.com. Echoes Bernard Baumohl, head of the global economy in the Economic Outlook Group in Princeton:This is one of the most promising signals that consumers do not intend to engage in over-balancing the economy this year and probably a large part of the future. High unemployment, slow recovery With an unemployment rate of 9.7 percent., The highest in 26 years, and is expected early next year, increasing this percentage to 10 percent. and with falling incomes and shrinking home values dramatically reduce household expenses. And in the United States, they represent about two-thirds of economic activity. Members of the Federal Open Market Committee at the August meeting of the committee expressed "uncertainty" about the projected growth in household expenditure. Did not help even the "cash for scrap ' Although many macroeconomic reports indicate that the economy is probably already at an early stage exit from the recession, but a sustained decline in employment still raises concerns that this process of recovery will be slow. Launched in late July, the government's program "cash for scrap 'could not prevent the record-breaking fall in value of consumer loans. Non-revolving loans, and therefore also those provided for the purchase of cars fell in July to 15.4 billion dollars. Revolving loan, which is assumed, for example, through credit cards, fell by 6.1 percent.
Breakthrough in this respect it may be August. Car sales incentive program expired at the end of last month and made the most of Americans bought cars from May 2008 Actually started selling cars and this program has brought some short-term benefits. But one month is too little for a good result throughout the year - said Guy Lebas, chief economist at Janney Montgomery Scott in Philadelphia. Forecasts predict that renewable energy credits may be reduced by the end of next year a further 20 percent., As banks reduce credit lines, and Americans are increasingly using payment cards.
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