IS A CONSUMER DEBT CRISIS ON THE HORIZON?
Media Focusing On Record High Consumer Debt
- Total household debt in the U.S. reached a record $17T in July, while revolving credit surpassed $1T
- Inflation adjusting theses figures, brings consumer debt back into perspective
U.S. Economy More Productive Than Ever
- Debt levels have risen, but so have incomes and GDP, increasing consumers ability to make debt payments
- Consumer loans as a percentage of GDP are trending lower than they have in the past 2 decades
Debt Unlikely To Hold Back Demand In 2023
- If consumer confidence continues its upward pace, consumers willingness to spend and form new households should not be restricted by debt burdens
- Banking turmoil, Fed decisions, or any number of events could shake confidence, but the current trend is positive
*Through 1Q
Sources: Marcus & Millichap Research Services, Board of Governors of the Federal Reserve System
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