Credit-card utilization and delinquency rates are on the rise
- Credit-card utilization and delinquency rates are on the rise
- Card loans are still growing, indicating consumer willingness to use credit cards
- U.S. retail sales slowed in October, but by less than feared
Card loans are continuing to grow, with a 1.6% increase in October over September across five major U.S. card lenders, compared to the typical 0.7% increase. This trend suggests that consumers are still willing and able to use their credit cards, which is positive news for retailers. Although U.S. retail sales slowed in October, the decline was less severe than anticipated, indicating a solid overall level. As a result, some retail stocks have seen a recent increase in value due to expectations for a strong holiday shopping season.
Factuality Level: 7
Factuality Justification: The article provides data from analysts at Goldman Sachs to support the claim that card loans are still growing. It also mentions that U.S. retail sales slowed in October but were still at a solid level. However, the article does not provide any counterarguments or alternative perspectives, and it does not address any potential risks or challenges that lenders or retailers may face.
Noise Level: 3
Noise Justification: The article provides some information about the growth of card loans and its potential impact on lenders and retailers. However, it lacks depth and analysis, and does not provide any evidence or data to support its claims. It also does not offer any actionable insights or solutions. Overall, the article contains some relevant information but lacks substance and rigor.
Financial Relevance: Yes
Financial Markets Impacted: The article provides information about the growth of card loans for five big U.S. card lenders, which suggests consumer spending and potential profitability for retailers. This information may impact the financial markets and companies in the retail sector.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article discusses the growth of card loans and its potential impact on retailers, indicating financial relevance. However, there is no mention of any extreme event.
Public Companies: Goldman Sachs (GS)
Key People:
Reported publicly:
www.wsj.com 
