Those hoping that the less-bad US employment report will translate into a consumer-led US rebound should take head of the latest US consumer credit data. Credit contracted $10.3 bln in June, double the estimate for a $4.7 pullback. May consumer credit was revised lower to -$5.4 bln from a -$3.2 bln.
This implies that consumer spending remains week and the savings rate will continue to grow.
The chart below does not contain the most recent two months data but suffice it to say the trend remains down.
