Last week, we brought you “‘It’s Not Showing In The Data’: Small Business Lending Plunges Despite Trump Bombast.”
In that post, we highlighted an amusing juxtaposition. Namely, the difference between Donald Trump’s favorite “sentiment” indicators and the “hard” reality of plunging small business lending.
Well, in light of that, we thought the following brief excerpt was interesting. Essentially what it says (and what the graph shows) is that contrary to Trump’s contention that confidence in the outlook for the economy is riding high, it’s actually collapsing at the fastest pace since 2008 if you think business lending matters.
There is another worry on the horizon. US corporate and industrial loan growth has been decelerating quickly. Loans in the week to 15 March were more or less the same as they were at the end of October. As a result, the year on year growth in lending has been drying up. Chart 1 shows that the deceleration decline has been as fast as it was in 2008 or 2002.