Below is a chart and brief excerpt from today's Early Look written by Director of Research Daryl Jones.

Our Retail Team recently conducted an in-depth analysis of Retailer Credit Risk. Their presentation focused directly on the issue of credit risks increasing as consumers have less discretionary income to pay off this debt. In the chart below, I've highlighted a slide from their presentation that examines lending standards across the consumer landscape. As you can see, lending standards are tightening across the board.

While it's challenging to predict precisely when consumer spending will significantly slow down, the data certainly suggests that consumers are operating on thin margins.

CHART OF THE DAY: Lending Standards Tightening Across the Board - Tcredit9.12