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Contracting bank credit levels could be a sign a recession is coming.

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  • Bank credit is seeing a sustained contraction for the first time since the Great Recession, according to Fed data.
  • That means businesses are borrowing less, as high interest rates chip away at confidence levels.
  • The US economy avoided a recession last year, but some Wall Street analysts and investors are still pessimistic.

A key gauge of economic health in the US has sunk into negative territory, adding credence to some of Wall Street's more pessimistic growth predictions.

Bank credit levels have now fallen for three quarters in a row, according to the Board of Governors of the Federal Reserve System – the first sustained contraction since 2010.

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economy, Markets, economy, Markets, Recession, next-recession, recession-outlook, us-economy-and-markets, us-economic-outlook, Stocks, Banks, Credit, federal-reserve, interest-rates, Inflation, consumer-confidence, stock-market-analysis, stock-market-outlook, stock-market-strategy, investing-analysis, investing-outlook, investing-strategy, credit-conditions
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Bank credit is shrinking for the first time since the Great Recession - and tha…