Scott Hoyt: “U.S. consumers cut spending dramatically during the recession. Even as growth has returned, the level of spending remains low and there is much pent-up demand. One constraint has been the lack of borrowing. Consumer liabilities continue to decline dramatically. A large portion of this decline is due to lenders writing off debt as uncollectible, but even adjusting for write-offs, consumers have been cutting debt, in sharp contrast with the prerecession years when debt increased to finance consumption. One requirement for the reacceleration in spending growth later this year and strong growth in the next few years is the gradual return of borrowing, and this is happening. A 2½-year decline in credit card balances is gradually ending. The Federal Reserve’s seasonally adjusted revolving credit data, primarily credit cards, showed small gains in balances in December and March.”