In the News
According to the Federal Reserve, monthly consumer credit debt rose $13.6 billion in August for a total credit debt level of $3.036 trillion. Revolving debt, which includes credit cards, decreased $0.9 billion to $848.9 billion. Non-revolving debt, including loans for cars, rose $14.5 billion to $2.188 trillion.
Retail sales fell 0.1% for the week ending October 5, according to the ICSC-Goldman Sachs index. On a year-over-year basis, retailers saw sales increase 1.8%.
The Mortgage Bankers Association said its seasonally adjusted composite index of mortgage applications for the week ending October 4 rose 1.3%. Purchase volume fell 1%. Refinancing applications increased 3%. The refinance share of mortgage activity increased to 64% of total applications from 63% the previous week.
Initial claims for unemployment benefits for the week ending October 5 rose by 66,000 to 374,000. Continuing claims for the week ending September 28 fell by 16,000 to 2.905 million. The less volatile four-week average of claims for unemployment benefits was 325,000.
The Reuters/University of Michigan consumer sentiment index for October’s preliminary reading fell to 75.2 from 77.5 in September. The current conditions component had a strong showing, rising from 92.6 to 92.8. The weakness came from the expectations component, which fell from 67.8 to 63.9. This is attributed to the ongoing stand-off in Washington. A separate reading on the 12-month economic outlook plummeted 15 points to 71.
Upcoming on the economic calendar are reports on the housing market index on October 16, housing starts on October 17 and the index of leading economic indicators on October 18.