Part 8/13:
Turning to consumer health, Leeman discusses recent weak reports from key sectors like used cars, which serve as indicators of consumer stress. The rise in used car prices and increased loan loss provisions at companies like CarMax suggest that consumers may be tightening their belts. The fear is that at some point, consumer spending—crucial for overall economic growth—may plateau or even decline as debt burdens become less manageable.
He highlights that, despite these signs, overall debt levels and credit portfolios remain relatively stable compared to pre-2008 levels, with some concerns about potential stress from student loan repayments possibly nudging delinquency rates upward.