US Credit Card Spending Down, But Student Loan Debt Still on the Rise
THE TAKEAWAY: US Consumer Credit for June $13.8B -> May revised $2.1B lower to $17.5B -> USD Flat
US Consumer Credit for the month of June came in at $13.8B, missing estimates of a $15.0B increase while the May print was revised downwards by $2.1B to $17.5B. Although a rise in consumer credit signals to some that the economy is improving (as consumers are more willing to take on debt for purchases of durable goods), it is important to note what kind of debt the US consumer is adding. Credit card borrowing decreased for the month of June, but student loan debt continues its dramatic and potentially dangerous rise.
The NY Federal Reserve estimate of total student loan debt is approaching $1 trillion.
Consumer Credit measures total financing for non-investment grade, durable goods over a one month period. These purchases may include automobiles and personal/retail loans. While the data presents an overview of purchases for more expensive goods, it is important to note that consumer credit does not include mortgages.
Source: FXCM Marketscope
The Dollar remained relatively unchanged after the release and remains in a tight range following massive declines against most of the majors today.
Gregory Marks, DailyFX Research Team
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.