Definition: The consumer credit
data tracks debt levels for auto financing and commercial banking credit,
including installment and credit card borrowings.
Source: Federal Reserve
Availability: Approximately five weeks following the reported month.
Likely Impact of Financial Markets:
Interest Rates: Considered dated material--little impact on interest rates.
Ability to Affect Markets:
Analysis of the Indicator:
Consumer credit trends are considered a fairly good indicator of consumer
spending. For example, a
trend of increasing consumer debt suggests strong consumer demand and vice-versa. Economists
consider it to be a poor tool for forecasting consumer sentiment trends.
The installment credit data is fairly stable, subject to very little
revision. However, auto financing is
volatile at times. It is best to look at several months' data for trends.
The consumer credit report is considered dated material and of only
minor consequence to the bond