Top
Commentary

Credit growth was supportive of continued recovery in Q1

21 Jun 2012 by Jim Fickett.

The Federal Reserve reported Flow of Funds data for Q1 earlier this month. Credit growth has been strong enough that the credit impulse (acceleration of credit) has stayed at a healthy positive value for the last three quarters. This indicates that credit growth was supportive of growing demand, i.e. a continued recovery:

Bank credit growth gives some preview of Q2. The series is noisy, but it would appear that bank credit might be growing steadily rather than accelerating. If so, it may be that current credit growth is not currently supportive of growing demand. We shall see.

(See US private sector credit impulse for background and sources.)