The Richmond Fed index is the 3rd regional index in a row to fall sharply back to negative territory after dropping 15 points in May to -1. Weakness was broad based as new orders, shipments and employment all fell hard. In fact, the declines registered in the last 2-months are the largest ever recorded in the index’s 23-year history.
The New York Fed released its latest report on household debt. In the first quarter debt increased by 136 billion to 12.25 trillion, 3.3% below the 2008 peak of 12.68 trillion. Most of the 1st quarters gain came from mortgage debt +120 billion, followed by student loans up 29 billion, delinquency rates continue to improve slipping .1% to 3.6%.
This is Caleb Lawrence Registered Investment Adviser Scotts Valley Drive and Willis Road in the Scotts Valley Plaza, Suite 202 or call me toll free at 888-RICH PIG / 888-742-4744.
You can catch me on the radio at noon each business day as well on California’s central coast. KPIG 107.5 FM in the Monterey Bay or KPYG 94.9 FM in San Luis Obispo.
Rebroadcasts, additional writings and other entries are also available on my Blog at www.clinvestments.com
Advisory services offered through Caleb Lawrence Registered Investment Adviser Inc.