Big Borrowing

Household debt rose for the 12th straight quarter in 17Q2, and is $12.8 trillion, a record. However, it’s just 67% of GDP, compared to 87% in 08Q3, when household debt last peaked. But, credit card and auto loan delinquencies are rising, albeit from low levels, despite debt service payments being just 10% of disposable income, a near all-time low. Of added concern, household savings is 3.8%, a near decade low.