United States Consumer Credit increased to $26.01 Billion in July from $18.81 Billion in June. Consumer credit has been rising over recent months as banks become more willing to lend and consumers become more willing to borrow. US Retail Sales rose 0.58% in August over the prior month. This marks a year over year increase of 5 percent. Retail sales, excluding automobiles advanced 0.30% in August within the retail sales index. These numbers bode well for the overall US economy as borrowing and purchases increase as consumers feel more confident with their employment situation. US Initial Jobless Claims was 315,000 for the week ending September 6th, an 11,000 increase from the prior week.
Low rates have not been reason enough to continue an expansion in real estate. US Mortgage Bankers Association Mortgage Applications dropped 7.2% in the week ended September 6th. Renting continues to be the living arrangement of choice for those in their 20’s and 30’s. There are various reasons why this is the case, but we may need to look no further than the “slack” in the jobs markets the FED refers to in their monthly statements.
China’s month over month inflation rate increased 0.20% in August and increased 2.0% year over year. Inflation continues to be a non-factor globally for the most part. This should allow for continued loose monetary policy from central bankers. Accommodative central banks mixed with improving earnings and a strengthening consumer have been positive themes for the stock market.