Signs of recession?
TransUnion published new report
- Credit card balances up 19% year over year to all time high of $866 billion total in the U.S.
- Gen Z and Millenials had balances grow 72% and 32% respectively
- Average credit card debt per borrower no $5,474
- Delinquency rate up to 1.94%
- Number of home equity line of credit originations up 47% to 409,000
- Home equity loan originations up 42% to 296,723
- American homeowners lost $1.3 trillion in home equity during last quarter, according to report from Black Knight Mortgage Software
- Number of car loans during last quarter down 2% to 81.2 million
- Delinquency rate up to 1.65%, or 200,000 customers not making monthly payment
- Home mortgage delinquency rate up to 2.8%
- 63% of Americans are living check to check, according to Lending Club survey
- The U.S. Commerce Department stated that inventories at wholesalers rose 0.6% compared to prior month
- Indication of caution on behalf of merchants
- Supply chain issues arising from Chinese lockdowns are lowering inventories of computers and electronic products, which fell 0.5%
- Petroleum inventories shrank 3.8%
- Alignable Business Referral Network survey:
- Small business rent delinquency rate up 7%
- 37% are unable to pay rent full and on time
- Meta/Facebook announced it is laying off 13% of its staff
- “Today, I am sharing some of the most difficult changes we have made in Meta’s history. I have decided to reduce the size of our team by about 13%, and let more than 11,000 of our talented employees go. We are also taking a number of additional steps to become a leaner and more efficient company by cutting discretionary spending and extending out hiring freeze through Q1”; stated CEO Mark Zuckerberg.
- Operating income decreased 46% during last quarter
- SAP survey states that 51% of US companies say that supply chain issues will persist in 2023
- 61% said wage and recruitment freezes would be their top move to combat continued rising supply chain costs
- Elon Musk now demanding all Twitter staff to be in office
- Must be in office at least 40 hours per week, unless personally approved by Elon Musk
- Will no longer be allowed to work remotely
- Elon Musk stated; “difficult times ahead”, and “no way to sugar-coat the message”
- In 2020, Twitter announced a “work from anywhere” policy that has now been rescinded
- 104,000 people have lost their jobs in the tech sector so far in 2022, account to Layoffs.