There are various ways to look at Household Debt (total debt outstanding including mortgages, loans, credit cards and other debt) in the United States, we look at two today.
The first is debt servicing costs to disposable income which effectively is how much it costs to service household debt as a fraction of disposable (after tax) income. The second is household debt outstanding to disposable income which effectively is how much debt there is with respect to the same disposable (after tax) income measure.
Chart 1: E-Commerce Retail Sales as a Percent of Total Sales
E-Commerce retail sales are now 9.8% of total retail sales (at the end of Q3 2018). Amazon is estimated to be 50% of all E-Commerce sales in the U.S. which would mean Amazon accounts for around 5% (or $1 in every $20 spent) of all retail sales in the U.S.
One big impact of the U.S. tax cut for corporations has been that corporate taxes now just contribute 8.3% of all U.S. federal taxes. As import tariffs rise, custom duties have been rising at a staggering rate, and tariffs on imported goods together with taxes levied at production now contribute 8.1% of all U.S. federal taxes. Taxes paid by individuals contribute the vast majority or 82.3% of all U.S. federal taxes.
The Federal Reserve increased the target for the bank’s benchmark rate by 0.25% (to a range of 2.25% to 2.5%) at the end of December, the ninth rate rise since 2015. Rising benchmark interest rates are having little impact on mortgage and saving rates or interest margin of banks.
Interest Margin of Banks in the United States stood at 3.33% at the end of Q3 2018, up just 0.03% from Q2 2018 (3.3%) and up just 0.18% from Q3 2017 (3.15%).
Some 16.2 million people now work in the Healthcare sector in the United States. Healthcare has displaced Retail as the largest employer in the United States and has been the biggest job creator since the 1990s. 10.8% of all nonfarm jobs are now in healthcare. Here’s a graph of the growth of healthcare jobs,
Today, the 3rd of January has been a record day every year (for at least the last 15 years) for several things. For starters you have online returns (in the U.S. and the U.K.), gym memberships and dating website(s) signups peaking on the day. But this year is different so expect the unexpected. We can’t write about everything today but cover four topics (Retail, Technology, Interest Rates and Debt).