Chillin' out till it needs to be funded
The Consumer Credit report for June yesterday (G.19) pointed to an expected decreasein revolver by more than 5% annual rate holding at May levels as retail slumped in June and in July on a curt withdraal by US Consumers from all spending in the month. However Student Loans rose by over $69 B in the month and even as Auto and Personal Loans seemed to shrink by $9B and $11 B, the Consumer Credit outstanding for the month was up $6B at $2.53T The new credit flow data in the report irons over discontinuous statistical aberrations to give real flows for each head and Non Banking Finance Companies and Credit Unions added $2 B each in the month of June to compensate for shrinkage in holdings of such debt at Banks, american families doing a complex balancing act to keep running expenses and stay away from underwater mortgages or further trouble apart from that mortgage.
Globally, House prices fell in Olympic Country as well as the rest of the Commonwealth even as yesterday’s PMI report surge brought the Loonies to rescind parity almost immediately falling from 1.02 to less than 99 cents. US also reports its leapfrogging series in International trade tomorrow as Asia gets to increase trade with the US to recompense for strictures in Europe. Aussie construction data showed a significant continuing fall even as RBA held rates waiting for production demand from China to pick up and new home loan data showed a 1% increase. Canada, as mentioned above is looking at increased consumer spending levels after a buoyant CAD
Money supply from so Korea and India confimed a relatively easy growth situation despite the global crunch with trade managing oto stay at 2011 levels from Asia. Indonesia had earlier reported a 6.4% growth in Q2 GDP and most local emerging Economies reported continuing trade surpluses including Malaysia. Even Japan is looking up with credit rising by 0.1% for the month of July LatAm moves remained wildly divergent as Argentinian nationalisation and Venezuelan hyper inflation continue to turn on the screws on Brazil while it managed to hold CPI at 5.2% China reports , its likely lowest, depressed inflation data in a few hours even as PPI continues into the third month at a likely negative 2.5% though retail sales are likely to come in at a 14% growing pace even before the country pushes its shadow surpluses into use to spur spending in the Economy under new leadership