Consumer Credit Plunges $17.5 Billion On Consensus Of -$5 Billion, Largest Drop On Record
US consumers have said "enough" - in November consumer borrowing plunged by seasonally adjusted $17.5 billion, the largest drop in history, on a -$5 billion consensus... and the market doesn't move one bit. Quants 1: Efficient markets 0. In November total credit dropped at a whopping 8.5% annualized rate, and while auto-related nonrevolving loans dropped a mere -2.9%, revolving credit plunged a stunning 18.5% annualized. This is a full blown consumer borrowing revolt.
Here is the month over month change in total consumer credit:
A chart of total consumer credit: in November it was at $2.464 trillion, after a record 10 sequential months of decline.