. The rate of new credit card delinquencies hit 7.2% in the second quarter, up from 6.5% in the first quarter, according to the Moody’s report, which was based on household debt data published earlier this week by the New York Federal Reserve. That closely watched rate measures the percentage of loans that became 30 or more days delinquent. This metric is now ahead of where it was in the second quarter of 2019, before the Covid-19 pandemic rocked the economy.
Still, the findings suggest that more consumers are struggling to keep up with high prices as they plow through savings built up over the past three years. Moody’s warns that new credit card and auto loan delinquencies will both continue “rising materially,” peaking in 2024 at between 9% and 10%, compared with 7% pre-Covid. That forecast is based on an assumption that the historically low unemployment rate peaks at around 5% as the economy slips into a “mild” recession.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:
United States United States Latest News, United States United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
WeWork says it has 'substantial doubt' about its ability to stay in business | CNN Business“Substantial doubt exists” about WeWork’s ability to continue to stay in business, due to the company’s losses, projected cash needs, and increased member turnover, according to the company’s second quarter earnings release.
Source: CNN - 🏆 4. / 95 Read more »
Under Biden, US oil production is poised to break Trump-era records | CNN BusinessCritics accuse President Joe Biden of waging a war on the oil industry that is hurting consumers at the gas pump. And yet, on his watch, US oil production is poised to shatter all-time records set during the Trump administration.
Source: CNN - 🏆 4. / 95 Read more »
How we're buying perfume could signal how we're feeling about the economy | CNN BusinessDemand for more budget-friendly roll-on rollerball perfumes is up 207% so far this year over last year, followed by a 183% jump in cheaper perfume samplers, according to Pattern, an ecommerce platform that analyzes online product search data
Source: CNN - 🏆 4. / 95 Read more »
Even 'Barbie' may not be able to rescue AMC Theaters | CNN BusinessBarbie has already pulled in over a billion dollars. That still may not be enough to save AMC Theaters, which has a looming bill it may not be able to pay back.
Source: CNN - 🏆 4. / 95 Read more »
Disney+ hikes prices as sales sink across the company | CNN BusinessThe Walt Disney Company is hiking prices for its Disney+ streaming service for the second time in less than a year, as its third-quarter earnings report showed revenue struggles almost everywhere but international parks
Source: cnni - 🏆 326. / 59 Read more »
Manhattan rents hit a record high for the third time in four months | CNN BusinessRents in Manhattan hit another all-time high in July, the third record high in the past four months, even as rents are cooling in other parts of the country.
Source: CNN - 🏆 4. / 95 Read more »