Wednesday, October 5, 2011

Consumer Delinquencies Rose in the Second Quarter Amid Slowing Economy

Consumer delinquencies rose 17 basis points to 2.88% of all accounts in the second quarter according to American Bankers Association’s Consumer Credit Delinquency Bulletin released this morning. Nine out of eleven loan categories showed slightly higher delinquencies amid weak job creation and a slowing economy.

Bank cards were a bright spot, with delinquencies falling 18 basis points from the previous quarter to 3.22% of all accounts. This improvement puts bank card delinquencies well below both the 15-year average and their level one year ago, 3.94% and 3.62% respectively.

ABA Chief Economist James Chessen noted that “the small increases in delinquencies reflect continuing pressures as consumers navigate the consequences of high unemployment, rising gas prices and a struggling economy.”

He also noted, “lackluster job creation, private sector uncertainty and public sector job cuts have stalled momentum and increased pressure on consumers as the economy struggles to find a way forward,”

Read the release.

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