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If everyone is confident, why aren’t they borrowing?

(April 11, 2017) -- The slowdown is more surprising given the rise in business and consumer confidence since the election. And it is worrisome because the lack of business investment is considered an important reason why economic growth has remained weak, the Wall Street Journal noted.

NEW YORK — One of the great mysteries and biggest concerns in the economy right now is the slowing growth in bank lending. Economists are searching for answers but none are entirely satisfying, the Wall Street Journal reported today.

Total loans and leases extended by commercial banks in the United States this year were up just 3.8 percent from a year earlier as of March 29, according to the latest Federal Reserve data. That compares with 6.4 percent growth in all of last year, and a 7.6 percent pace as of late October.

The slowdown is more surprising given the rise in business and consumer confidence since the election. And it is worrisome because the lack of business investment is considered an important reason why economic growth has remained weak, the Wall Street Journal noted.

The full story is available at the Wall Street Journal.

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About Greg Gerber

Greg Gerber is a freelance writer and podcaster who has been writing about the RV industry since 2000. He is the former editor of RV Daily Report and can be reached at greg@rvdailyreport.com.

2 comments

  1. Imagine that!
    The banks that made it nearly impossible to borrow from during the recession are surprised that people haven’t rushed in to borrow from them now that things are much better. People haven’t forgotten and maybe have learned to save more and borrow less.

  2. Welcome to the real world economy, WSJ though this, what little I could read without paid subscribing, sounds like more MSM drivel without any real research and is a fluff filler. Confidence is one thing but for a company to actually jump into debt without a long term commitment by our currently fractured government is not where real business leaders want to tread. I doubt this is applied to RVs, as current shipment of new units is still at a record pace even though the products have way too many flaws and built by less then competent workers. Most of these units have a loan and at pretty high rates vs homes and transportation.

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