Today Update

US: Consumer credit fell by US$12bn in August


US consumer credit fell in August for a seventh straight month as banks maintained restrictive terms and job

losses made households reluctant to borrow. Consumer credit fell by US$12bn (5.8% y-o-y) to US$2.46trn.

Credit dropped by US$19bn in July, less than previously estimated. The series of declines is the longest since

1991. Economists had forecast consumer credit would drop US$10bn in August. (Bloomberg)

Global: Gold rise to record shows investors split with banks

Gold’s rally to a record shows commodity investors remain concerned that the US economic recovery will spur

inflation even as Wall Street forecasts and government bonds suggest stable prices. Bullion has jumped 18%

this year, heading for a ninth annual gain, and futures touched a record US$1,049.70 an ounce yesterday amid

rising demand for a hedge against inflation and a weaker dollar. Economists surveyed in the past month expect

US consumer prices to fall 0.5% this year, the first drop in five decades. Demand for gold is increasing as US

government debt reaches record levels and the Federal Reserve keeps interest rates near zero percent.

(Bloomberg)