2012 Economic Calendar
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Consumer Credit  
Released On 3/7/2012 3:00:00 PM For Jan, 2012
PriorPrior RevisedConsensusConsensus RangeActual
Consumer Credit - M/M change$19.3 B$16.3 B$10.0 B$-5.0 B to $19.4 B$17.8 B

Consumers are definitely borrowing again based on a major five-month surge in outstanding credit, the latest a $17.8 billion gain in January vs a revised $16.3 billion gain in December. During the five months, outstanding credit has jumped $68.5 billion. At $2.512 trillion, total outstanding credit is only $70 billion below its July 2008 peak of $2.582 trillion.

In what is nearly a new record for an old series, non-revolving credit, reflecting strength in auto sales, surged $20.7 billion in the month. The big gain offset a slight decline in revolving credit which nevertheless, reflecting increasing use of credit cards, continues to trend higher. The Dow is moving to session highs following today's report.

Consensus Outlook
Consumer credit outstanding rose $19.3 billion in December following November's breakthrough gain of $20.4 billion. Both months saw significant gains for revolving credit (mainly credit cards), up $2.8 billion in December following November's $5.6 billion surge. Until recently, consumers had been tight with credit card usage. Also, banks have slowed the pace of write-offs of bad debt. Non-revolving credit jumped $16.6 billion in December, reflecting healthy auto sales. Unit new auto sales in January-up a monthly 4.6 percent-suggest sizeable boost in the nonrevolving portion of consumer credit for the month.

The dollar value of consumer installment credit outstanding. Changes in consumer credit indicate the state of consumer finances and portend future spending patterns.  Why Investors Care
The debt-to-income ratio shows how indebted consumers are relative to income. A rising ratio indicates that consumers are taking on greater debt burdens with respect to income growth. In a growing economy, this may not be dangerous. However, indebtedness could quickly become a problem if income and employment conditions turn around. The yearly change in debt outstanding shows yearly trends in debt growth and tends to be less volatile than the monthly change.
Data Source: Haver Analytics

2012 Release Schedule
Released On: 1/92/73/74/65/76/77/98/79/1010/511/712/7
Release For: NovDecJanFebMarAprMayJunJulAugSepOct

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