DBRS Morningstar Publishes: “DBRS Morningstar: U.S. Consumer Finances on Solid Footing for 2020”

DBRS, Inc. (DBRS Morningstar) published a commentary reviewing the U.S. consumer finance outlook for the upcoming year. The finances of the U.S. consumer are expected to remain healthy overall in 2020, as income growth continues to exceed household debt growth and interest rates remain low. This is also good for lenders, as many borrowers have improved their capacity to service their debt.

Key highlights include:

-- U.S. households’ finances are expected to remain healthy overall in 2020, as the prolonged economic expansion has helped reduce their leverage.
-- Overall, capacity of U.S. households to service their debt obligations remains very manageable, but lower income households are more exposed to an economic downturn.
-- Total U.S. household debt is likely to grow in the mid-single digit range in 2020, a positive for financial institutions focused on consumer lending and generally supportive of stable ratings.

“Overall, U.S. consumer finances are expected to remain healthy in 2020. Households are expected to keep the growth of their debt below the growth in their income. The continued expansion of the economy and the strong labor market underpin personal income growth. As a result, consumer leverage is expected to decline further in 2020,” said Yanni Koulouriotis, Vice President.

This commentary is available at www.dbrs.com.

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