US consumers have started to re-leverage once more. Consumer credit has started growing at a pace that is faster than growth in retail sales. Question, however, is can this be sustained when the job data is much less optimistic. As data reveals, underlying the improved employment data is vast number of workers opting for part-time employment in the absence of full time jobs. Also, the number of discouraged workers is still very high, which ensures that the actual unemployment rate is rosier than it is in reality.
The old habit seems to have come back, even when the conditions are not conducive enough. But is this sustainable? Is the US economy just a few shocks away from getting back to recession?
I have been an avid blogger. However, regulatory requirements, post my new assignment, has resulted in me taking a break. Wait till I am back.