The US Federal Reserve released data yesterday which showed the level of outstanding consumer credit grow from last month’s $4.8B to a whopping $6.2B for the month of May. Expectations were for a climb to $5.2B from the previous month.
The Fed’s Consumer Credit report is only a mild indicator which has weak correlation to consumer confidence levels across the United States. Increases in consumer debt levels suggest a higher willingness by banks to lend and an eagerness to spend by Americans. The correlated growth in yesterday’s Economic Optimism report by IBD/TIPP supports this growth in American consumer spending levels for the previous month as we head into June.
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Greg Holden is the Chief Market Analyst at ForexYard. Greg uses his detailed knowledge of fundamental and technical analysis to provide some of the leading market forecasts in the forex world today. A guest lecturer at forex symposiums and Chief Editor of ForexYard's analysis center, Greg brings highly detailed and easy-to-use market analyses to his clientele. He has been published on ForexYard's Trading Blog and affiliate websites. Greg holds degrees in Political Science and Economics from Missouri State University, as well as a Masters degree in Middle Eastern History.
