Credit growth was positive for the US economy in Q4

26 Mar 2012 by Jim Fickett.

The US credit impulse rose slightly from Q3 to Q4, remaining at a level consistent with healthy growth in private demand.

To get some preview of Q4 results, we look at growth in bank credit through February:

It is hard to be sure of a trend, given the large amount of noise in the series. The upward trend is either intact or is leveling off, but is pretty clearly not turning to a downtrend.

All told, the data on credit growth support the idea that the recovery continues for now.

(See US private sector credit impulse for methodology, sources, and links to past commentary.)