Economic Report: Signs of ‘fickle’ consumer as borrowing slows in July


Consumer borrowing slowed in July after strong gain in the prior two months, according to Federal Reserve data released Wednesday. 

Total consumer credit increased $17 billion. That’s an annual growth rate of 4.7%. Credit rose $37.9 billion in June, the largest gain since early 2006 and rose $34 billion in May.

Economists has been expecting a $26 billion gain in July, according to the Wall Street Journal forecast. 

“Overall, the consumer remains fickle, driven by changing stimulus and the delta variant,” said T. J. Connelly, head of research at Contingent Macro.

The data does not include mortgage loans, which is the largest category of household debt.

Revolving credit, like credit cards, rose 6.7% in July after a 22.4% gain in the prior month. 

Nonrevolving credit, typically auto and student loans, rose 4.1% in July after a 7.2% growth rate in the prior month. Analysts said the drop might be due to weaker auto sales.

The Fed: Fed’s Williams: Labor market hasn’t cleared the hurdle to set off bond tapering

Previous article

Personal Finance Daily: Ida caused an estimated $24 billion in damage in the Northeast, and more American households with kids went hungry during the COVID-19 pandemic

Next article

You may also like


Leave a reply

Your email address will not be published. Required fields are marked *

More in News