Consumer credit rose in the month of September, albeit at a slower rate. The Federal Reserve showed an increase of some $11.36 billion versus August to $2.737 trillion. The increase was put at an annualized gain of 5% but that had been up 8% in August. Dow Jones was looking for a gain of about $11 billion. Bloomberg was calling for a gain of about $10.2 billion and Bloomberg’s range was $7 billion to $15 billion.

Credit card lending, measured by revolving credit, was actually down by some 4.1% in September versus August. That reading fell by $2.9 billion to $852.01 billion. Did the Labor Day holiday really not see any boost to borrowing?

The non-revolving credit, measured by car loans and student loans, rose by 9.2% on an annualized basis. That gain was by almost $14.3 billion to $1.885 trillion.

Reports on consumer credit do no really move the markets but they can show whether or not growth and trends are peaking. Today is more caution that the underlying economy was still not really growing that much in September and it was long before the election was certain.

JON C. OGG

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