Consumers Turn Frugal On Cards but Nonrevolving Credit Up Sharply
The Fed's Consumer Credit report shows consumer credit increased at a seasonally adjusted annual rate of 5-1/4 percent.
- Revolving credit decreased at an annual rate of 2-1/4 percent
- Nonrevoving credit increased at an annual rate of 7-3/4 percent
Econoday commented "The August decline in credit card debt shows consumers acting more frugal and paying down some of July's splurge, and larger payments due on their growing student loan or car loan debt may also be imposing necessary spending austerity."
Revolving credit was down two out of the last three months but was up a whopping 10.5% last month so it's hard to suggest a trend change toward frugality.
Moreover, It's October 7, and we are just now finding about about consumer credit in August.
As a practical matter, the monthly report almost seems useless. The long-term charts are far more interesting.
More coming up as soon as I finish the charts.
Mike "Mish" Shedlock