Consumer credit in the USA fell by a 5.8% annual rate in August to US$2.46T, the Federal Reserve reported Wednesday. The US$12B dollar decrease, much worse than the US$7.5B decline that economists forecast, followed a record cut of US$19B in July, or a 9.1% annualized drop. For August, consumer credit in revolving loans, a category that includes primarily credit card debt, plunged by 9.9% at an annual rate. Demand for revolving credit used to finance cars, vacations, education and other things, meanwhile, was down 1.6%. The strength in consumer borrowing will continue to be weak as job layoffs are rising, according to economists. The Labor Department reported last week that the unemployment rate rose to 9.8 percent in September, the highest in 26 years. Many economists believe the rate might hit double digit next year.
Popularity: 1% [?]
