Undertow in Credit Conditions?
Recent marginal interest rate increases have scarcely surprised the consensus – who take this tightening as a sign the U.S. economy is in a firming economic recovery. As such, many expect credit growth to improve further over the next year.
But is such extrapolation warranted? After all, borrowers are sensitive to even modest changes in credit conditions. ECRI’s U.S. Leading Credit Index (USLCrI), which is featured in our latest report, provides clear indication of the cyclical direction of credit growth in coming quarters.