Friday, November 6, 2009

-2 plus -2

WASHINGTON (MarketWatch) - Outstanding consumer debt fell at a 7.2% annual rate in September, the eighth consecutive decline, the Federal Reserve reported Friday. Consumer credit fell by $14.8 billion to $2.46 trillion in September, down 4.7% compared with a year ago. Outstanding credit can fall if consumers pay off balances, or if lenders write off bad loans. The decline in September was led by another huge drop in revolving debt, such as credit cards, which fell $9.9 billion to $889 billion, or a 13.3% annual rate.

and
From the Bureau of Labor Statistics:
The unemployment rate rose from 9.8 to 10.2 percent in October, and nonfarm payroll employment continued to decline (-190,000), the U.S. Bureau of Labor Statistics reported today. The largest job losses over the month were in construction, manufacturing, and retail trade.

Between the trend and the upcoming January revisions to job losses expect Q1 of 2010 to see 12% unemployment.

Given consumer credit retrenchment, actual job losses, those losing unemployment benefits AND those worried job holders, how much of a Christmas will retailers have?

No comments:

Post a Comment