Economy Continues to Slow as Consumer Credit Collapses240 views 2012-10-09 00:53 Tags: consumer spending
“If consumer confidence is low, consumer spending is
low—damaging the U.S.
economy,” explains Lombardi.
Considering consumer credit to be a key indicator of
consumer confidence, Lombardi reports that consumer credit fell to $3.3 billion
in July, the first drop after 10 months of positive data.
Lombardi claims that the decline in consumer credit has
caught the U.S.
economy by surprise.
confidence is in the slumps because the U.S.
economy is in a horrifying state,” says Lombardi, noting that consumers can’t
be blamed, as they are justified in their lack of confidence in the U.S.
“For economic growth, consumer confidence has to increase, and consumers need to feel comfortable while spending,” reasons Lombardi. “Economic growth happens when wealth in an economy is created, and this is clearly not being witnessed here in the U.S. economy.”
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