Consumers Increase Borrowing on Everyday Items - Economy * US * News * Story

CNBC'S MOST SHARED

MORE HEADLINES

Markets | Economy | Companies

- Alcoa To Post Loss, but What Does It Mean for the Economy?

LATEST FROM OUR BLOGS

- Market 360: The Week's Best & Worst

FEATURED SLIDESHOWS

Collection of Michael Jackson
Earlier this year, Jackson sought to auction his personal items. Although it never came through, here's a look at what was almost sold.
Recession-Resistant US Cities
Some cities have been hit much harder than others during the recession. Here are the metro areas faring the best.
How Much For A T-Bone Steak?
From the cost of a T-bone steak to a monthly phone bill, the price for everyday items can vary dramatically across the country.

SPECIAL REPORTS

Boom, Bust and Blame
The inside story of the economic crisis that has gripped the entire world.
E3: Gaming's Cutting Edge
North America's premier computer and video game trade show draws tens of thousands of professionals to experience the future of interactive entertainment.
The Fall of GM
A look into the fall of General Motors as the automaker heads toward bankruptcy and an effective nationalization.

Credit Crunch Puts Pinch on Savings: Malpass

By: CNBC.com | 07 Aug 2008 | 10:40 AM ET

Text Size

Today’s consumer credit report is expected to show that the economic slowdown caused consumers to borrow less readily in June, but David Malpass, president of Encima Global, disagreed.

People are simply shuffling around their credit card use, racking up more purchases on everyday items such as gas, and reducing additions to their savings and 401(k)s, he said.

"The big thing in '02, '03, '04, '05 was people were piling new money into financial assets," Malpass said. "Now they pull back on that and maintain a pretty even keel on consumption."

RELATED LINKS

He expects to see consumer resilience even after rebate checks are used up, despite Wal-Mart Stores [WMT Loading... () ] and Target’s [TGT Loading... () ] disappointing same-store sales reports. He said the biggest risk to healthy consumer credit is jobless claims, which hit their highest level in six years earlier today.

Tools: