Consumer loans higher than personal savings for the first time since 2008

The consumer credit data coming out this Tuesday June 7th will likely be another shocker. The last 2 monthly readings showed consumer debt was way higher than forecast; and remember the last two monthly readings were the release of the Feb & March data so this Tuesday’s (April) data will show the sustained weight of higher gas/food/energy prices

Also nearly 20 million households were behind on utility payments and this was back in February before they endured 3 months of even higher fuel & food inflation from March->now.

US households gained about $2.5 trillion in excess savings since March 2020 from stimulus and higher wages. The extra cash has helped keep consumer spending strong, which in turn has driven prices higher. Now inflation is gnawing away at those savings, and CEOs warn they could run out within months.

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