One month ago, when multiple discount retailers (here and here) were lamenting the sudden collapse in US consumer purchasing power, we highlighted the reason this unexpected hit to US consumption: as the US personal savings rate had collapsed, the growth in consumer credit was slowing, and in last month, the Fed reported that credit card debt growth posted its first decline since the covid crash.
But fast forwarding just one month later, when in a striking reversal, October consumer credit growth unexpectedly reversed the dramatic September slowdown, and soared more than $19 billion, to a new record high of $5.084 trillion.
And while non-revolving credit – which is far less volatile and much more predictable – grew $3.5 billion, a bounce from last month’s tiny $1.54 billion but a far cry from the $10+ billion average in the post-covid era…
… the highlight was that the much more consumer-outlook sensitive revolving credit (i.e. credit card debt) exploded, and in October surged the most since the covid crash and was – amazingly – the third biggest monthly increase on record!
OC just announced the 2025 brand new weekend event (3rd weekend in May, 17th and 18th) called Boardwalk Rock. Yep, something new (pushing car weekend earlier…..and after folks already booked that 3rd weekend for cruisers…) no bands listed yet. Why important to this credit card article. Well if this is gonna be like Oceans Calling and the Country show……peeps will need to use their credit cards for hotel rooms and tickets. Or the elite will be able to attend.
Chasing money lost years ago by jamming something every weekend then out pricing vacationers during the summer is not sustainable long term. Good example of long term failure? Atlantic City. 2yrs and the old mindset will finally retire. Too bad it didn’t happen this election.
Just sayin.
The cruisers should not change their reservations and come to OC the week they planned. The don’t need the beach parking lot or convention center to have a good time.
Our fellow citizens are disturbingly irresponsible. Excessive borrowing, wasting money on ridiculous interest rates, and then complaining about how excitement things are and acting like it’s not their own fault! Grow up people!