For the first time since February 2009, credit card late payments appear to be rising. Five of the six largest card issuing firms say the number of payments late by 30 days or more rose in September. The rate of increases were all less than a percentage point. But late payments, or delinquencies, are considered an indicator of potential defaults by consumers. The banking industry is still recovering from a big rise in defaults during the 2008 financial crisis.
A new concern for global investors. A growth slowdown in China. Until now the leading engine of growth for the global economy.. Asian stock averages were down sharply overnight. But just how bad is it really? China’s third-quarter gross domestic product rose 9.1% from a year earlier.. That’s slower than 9 and a half per cent annual growth during the spring. China’s industrial production during the summer rose 13 and a half per cent.
European finance ministers are still struggling to come up with a convincing package of reforms to limit the impact of the sovereign debt crisis. An announcement on new proposals is expected at the October 23 summit of Eurozone leaders.