Consumers bust out the plastic, wholesale inventories upwardly revised
SPY•US consumer credit increased by $27.83 billion in September, more than double economists’ expectations, while wholesale inventories rose 0.7%. US indexes advanced, with the Nasdaq up more than 2.5%.
1. Consumer credit rebounds
US outstanding consumer credit increased by $27.83 billion in September, compared with analysts’ expectations for a $12.0 billion rise. Revolving credit, including credit card debt, surged by $16.30 billion, reversing August’s $4.97 billion paydown; non-revolving credit grew by $11.54 billion.
2. Inventories and markets
US wholesale inventories rose 0.7% in September, above economists’ expectations for 0.6% growth. US indexes advanced, with the Nasdaq up more than 2.5%; consumer discretionary led S&P sector gainers, while consumer staples was the sole decliner.
3. Focus shifts to CPI
The article noted that consumer savings had dipped to 3.8%, the lowest in nearly four years, while revolving credit balances had risen at a 14.5% annual rate. Economists polled by Reuters expected year-on-year headline and core CPI readings of 3.9% and 2.7%, respectively.
