Showing posts with label fourth. Show all posts
Showing posts with label fourth. Show all posts
Thursday, November 14, 2013
Consumer Delinquencies Decline Significantly in Fourth Quarter 2012
Consumer delinquencies declined significantly in last year’s fourth quarter, with bank card delinquencies falling to levels not seen since the third quarter of 1994, according to results from the ABAs Consumer Credit Delinquency Bulletin.
The composite ratio, which tracks delinquencies in eight closed-end installment loan categories, fell 17 basis points to 1.99 percent of all accounts in the fourth quarter, below the 15-year average of 2.39 percent. The ABA report defines a delinquency as a late payment that is 30 days or more overdue.
James Chessen, ABA’s chief economist, attributed the improvement to consumers’ continued efforts build a financial buffer against economic uncertainty.
“Consumers continue to carefully manage their finances in an effort to get debt levels under control and build up a secure financial base,” Chessen said. “While this conservative approach to credit may slow economic growth in the short-term, it portends stronger, more consistent growth in the future. The sharp decline in delinquencies reinforces the notion that the economic recovery has become more self-sustaining and is on a path to increased growth.”
While Chessen found the continued decline encouraging, he cautioned that future challenges could make it difficult for some consumers to meet their financial obligations.
“Make no mistake about it, a great deal of uncertainty still lingers over this economy,” Chessen said. “Furloughs from sequestration, falling disposable income and increased healthcare and regulatory costs for businesses could lead to challenges in the year ahead.”
Read ABAs full release.
ReadThe RestEntry..
The composite ratio, which tracks delinquencies in eight closed-end installment loan categories, fell 17 basis points to 1.99 percent of all accounts in the fourth quarter, below the 15-year average of 2.39 percent. The ABA report defines a delinquency as a late payment that is 30 days or more overdue.
James Chessen, ABA’s chief economist, attributed the improvement to consumers’ continued efforts build a financial buffer against economic uncertainty.
“Consumers continue to carefully manage their finances in an effort to get debt levels under control and build up a secure financial base,” Chessen said. “While this conservative approach to credit may slow economic growth in the short-term, it portends stronger, more consistent growth in the future. The sharp decline in delinquencies reinforces the notion that the economic recovery has become more self-sustaining and is on a path to increased growth.”
While Chessen found the continued decline encouraging, he cautioned that future challenges could make it difficult for some consumers to meet their financial obligations.
“Make no mistake about it, a great deal of uncertainty still lingers over this economy,” Chessen said. “Furloughs from sequestration, falling disposable income and increased healthcare and regulatory costs for businesses could lead to challenges in the year ahead.”
Read ABAs full release.
Monday, May 20, 2013
Fourth Quarter GDP Revised Up to 3
Fourth quarter growth accelerated to 3%, up from 1.8% in the third quarter according to the BEA’s second estimate released this morning. The initial estimate reported fourth quarter GDP growth of 2.8%. For all of 2011 the economy grew at 1.6%, led by investment and exports. During this time, government spending contracted
Fourth quarter growth acceleration was led primarily by a large shift in inventories, which changed from dragging 1.35% on growth, to aiding growth by 1.88%. This amounted to about two thirds of growth over the quarter.
The revision from the initial estimate was led primarily by faster growth in fixed investment and lower imports. Consumer and government spending both saw minor upward revisions as well. Exports and inventory accumulation saw revisions that dragged on growth slightly.
Looking forward, the accumulation of inventories at the end of 2011 does not bode well for growth in early 2012. Furthermore, trade had begun to drag on growth in the fourth quarter and is likely to continue to do so as headwinds from Europe persist.
Read the report.
ReadThe RestEntry..
Fourth quarter growth acceleration was led primarily by a large shift in inventories, which changed from dragging 1.35% on growth, to aiding growth by 1.88%. This amounted to about two thirds of growth over the quarter.
The revision from the initial estimate was led primarily by faster growth in fixed investment and lower imports. Consumer and government spending both saw minor upward revisions as well. Exports and inventory accumulation saw revisions that dragged on growth slightly.
Looking forward, the accumulation of inventories at the end of 2011 does not bode well for growth in early 2012. Furthermore, trade had begun to drag on growth in the fourth quarter and is likely to continue to do so as headwinds from Europe persist.
Read the report.
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