Household Debt Flow Increases in 2Q 2013
According to the Federal Reserve's Flow of Funds report, households added $7.5 billion of debt in the second quarter of 2013. This is the fifth time in the last seven quarters that households have increased their level of debt. Since the first quarter of 2011, the trend has been for households to add more debt each quarter. Although, househols debt flow is more volatile than it was prior to financial collapse in 2008. The increase in household debt is both good and bad news. It's good news in the short term because it tends to correlate with an increase in durable goods spending. It's bad news in the long term because households still have far too much debt.
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