According to the US Federal Reserve, the loan growth at banks slowed down last month, which broke its 10 month streak of acceleration. Bankers cited several factors that led to the slowdown that includes concerns about the US economic recovery, Europe?s debt crisis, and uncertainty over tax laws after the presidential election.
US bank same day loans increased by 5 percent compared to July of last year to $7.1 trillion. It was slower than the 5.3 percent growth in June. Analysts expect loan growth to continue to be slow for the upcoming months as a sign of a decelerating economy.
The manufacturing industry contracted in July. This was the second straight month it happened after expanding for nearly three years. The gross domestic product slightly grew by 1.5 percent in the second quarter. This was seasonally adjusted and annualized. The GDP grew 2 percent in the first quarter and 4.1 percent in the fourth quarter of 2011.