Given Past Few Years, C&I Slowdown Isn’t At All Surprising

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Source: Given Past Few Years, C&I Slowdown Isn’t At All Surprising | Alhambra Investments

by Jeffrey P. Snider

There isn’t much data available on the mechanics of lending or the other side of it borrowing. It’s a topic of interest nonetheless given the crucial role (sadly) of debt in determining the marginal economic direction (second derivative). A financialized economy is a drag without credit growth.

One of the more encouraging signs on that account was an acceleration of growth in commercial and industrial (C&I) loans in 2014. This category of lending/borrowing relates to the vital effort toward productive capex. Given the problems of this economy and the dearth of productive investment, the languishing of C&I after the 2012 slowdown was an ominous sign over the potential implications for that slowing.

The growth rate peaked, however, at just shy of 13% year-over-year in January 2015. That was slightly slower than the…

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