US consumer credit slowdown could be cause for concern
Rising credit card and auto loan defaults may be catching up with spenders
We’ve been talking about tapped-out consumers and the higher default rate on auto loans and credit cards. The big undershoot Monday on consumer credit could be important.
The 12-month moving average shown in the chart below is back to where it was in early 2014. From the monthly data it looks like consumer credit downshifted to a lower level in 2017 and stayed there.