The Federal Reserve reported a 3.6 percent increase in U.S. consumer loans in July, equivalent to $12.2 billion, marking a greater dynamic in the country’s economy.
The importance of this financial behavior is even more appreciated when considering that consumer spending represents 70 percent of the economic activity in the United States.
Likewise, this data is significant in light of the impact generated by the CCP (Chinese Communist Party) Virus, which reduced the gross domestic product by 31.7% in the April-June quarter, due to the closure of many sectors of the economy, leaving millions of people without work.
This increase in credit requests is even greater than the 3.3% registered in June, according to The Associated Press of Sept. 8.
The money requested was invested in the purchase of cars and in the payment of student loans, mainly.
GDP is expected to increase at an annual rate of 25 percent or more in the current July-September quarter.
The economy is recovering quickly from the chaos of the CCP Virus pandemic.
The financial sector has outperformed countries such as the United Kingdom, Japan, and China, among others.
Likewise, housing construction grew substantially and the demand for vehicles increased 65% in the last three months.
The millions of jobs recovered reduced unemployment to 8.4%, after 20 million jobs were lost in April.
President Donald Trump celebrated the record drop in unemployment, in one of his tweets.
“Great Jobs Numbers! 1.37 Million Jobs Added In August. Unemployment Rate Falls To 8.4% (Wow, much better than expected!). Broke the 10% level faster and deeper than thought possible.”
Great Jobs Numbers! 1.37 Million Jobs Added In August. Unemployment Rate Falls To 8.4% (Wow, much better than expected!). Broke the 10% level faster and deeper than thought possible.
— Donald J. Trump (@realDonaldTrump) September 4, 2020