Charting The Trend: Real Estate and Commercial & Industrial Loans

Last week’s Federal Reserve update on loans at commercial banks in the U.S. reports the fourth straight monthly rise in C&I loans in February. The monthly dollar value of those loans (seasonally adjusted) continues to slip, however, increasing by $2.3 billion, well down from January’s $5.3 billion advance. Meantime, real estate loans continue to retreat. Last month’s drop accelerated, posting the biggest monthly decline in a year in seasonally adjusted dollar terms.

Reviewing the numbers in context with a longer span of history suggests that C&I loans are stabilizing. Real estate loans, by contrast, continue to weaken.

Measured on a rolling 12-month percentage basis, the rebound in the C&I trend looks more pronounced. There’s also a hint that real estate loans may finally be stabilizing as well when tracked by their annual percentage change.

About James Picerno 894 Articles

James Picerno is a financial journalist who has been writing about finance and investment theory for more than twenty years. He writes for trade magazines read by financial professionals and financial advisers.

Over the years, he’s written for the Wall Street Journal, Barron’s, Bloomberg, Dow Jones, Reuters.

Visit: The Capital Spectator

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