BREAKING: Commercial and industrial loans at US commercial banks surged +$254 billion YoY in the week ending August 21st, to $2.93 trillion, the highest level since June 2020. This also marks the largest YoY increase since March 2023. Last week alone, commercial and industrial loans jumped +$8.4 billion. As a result, these loans are now just $137 billion below the May 2020 peak of $3.07 trillion. Such a rapid increase is usually a sign of improving credit demand and business activity, especially when it rises alongside improving CapEx. This all comes despite inflation remaining above 3.0% for 5 consecutive months, suggesting businesses are increasing borrowing even as price pressures remain elevated. US business are leaning heavily into credit.(The Kobeissi Letter)