Construction and Industrial Loans Falling w/ Rates Rising

Construction and Industrial Loans Falling w/ Rates Rising



While leading economic indicators are strong…





Commercial and Industrial Loans are lagging…..





Over the past few decades, Fed Funds Rate has had a direct correlated with Commercial and Industrial Loans.  For example, when loans are weak, the Fed Funds declined, which helped borrowers.  However, this cycle we see loan declines with rates RISING with expected continued increases in the Fed Funds Rate (see below).   Continued divergence in this critical area could be the weak link for a continued robust bull market.