Alarm bells have been sounding the warning of a potential recession since early Spring of this year. Despite the warning signs, consumers had a huge surge in spending in the month of July. According to the Federal Reserve’s consumer credit tracker, evolving credit spending spiked 11.25% in the month of July.
These are numbers that are typically seen during the holiday season as opposed to the middle of summer. This surge in spending can be viewed in two ways. First, consumers may be feeling confident in their ability to repay debt or conversely, they are supplementing income with revolving credit to make ends meet.
Recession concerns began to grow with the escalating trade war with China. However, some are speculating that America is attempting to talk itself into a recession for political gain and election manipulation. While there is no guarantee that we are headed for a recession, the warning signs are very hard to ignore.
For more information contact your Yuba City bankruptcy attorney at (530) 797-4402.
Categorized in: Debt