Credit Card Debt, Credit Conditions, & More

Week in Review: Nov. 6-10

This week was light on economic data releases but heavy on Sage Economics content, which you can read here: 30-Year Construction Trends Part 1: The Retail Apocalypse and Why Everyone Is on Parental Leave Right Now. Despite the sparse release schedule, we learned more about credit conditions, the trajectory of gas prices, credit card debt, and more.

Monday

Senior Loan Officer Opinion Survey

Credit conditions tightened in the third quarter, albeit at a slower pace than in the second quarter. Of note for many of our readers: about 65% of banks tightened their standards for construction and land development loans, while exactly 0% of banks eased their standards. About 60% of banks say demand for construction loans has fallen over the past quarter, while just 7% say demand has increased.  

Gas Prices

Gas prices fell for the seventh straight week. At $3.52/gallon, prices are at their lowest level since the beginning of March. This is saving Americans over $100 million per day compared to gas prices one month ago.

Diesel Prices

Diesel prices fell again and, at $4.37/gallon, are $0.97/gallon cheaper than during the same week last year.  

TSA Checkpoint Travel Numbers

The number of people passing through TSA security during the last week of November slipped to just 0.7% higher than during the same week of 2019. As consumers rack up credit card debt and the weather turns colder, demand for travel seems to be waning.

Tuesday

Household Debt and Credit Report

Total household debt increased 1.3% in the third quarter, the fastest increase since the end of 2022. While real (inflation adjusted) debt levels remain in good shape, the share of credit card debt that transitioned into serious delinquency (90+ days) hit the highest level since 2011. With credit card interest rates at the highest level since at least 1994, interest payments will be punishing for those who do enter serious delinquency.

There’s a lot to unpack in this release, and we’ll probably have a longer post on it in the next week or two.

Wednesday

Employer-Reported Workplace Injuries and Illnesses