Consumer borrowing decreased by $12 billion in August, or 5.8% at an annual rate, to a seasonally adjusted $2.46 trillion from $2.47 trillion in July, the Federal Reserve reported yesterday. Credit has now fallen for seven straight months.
Revolving credit, which includes credit card loans, fell by $9.9 billion, or 13%, in August. Non-revolving credit, which includes loans for cars and education, fell by $2.1 billion. Economists expected consumer credit to decrease $10 billion for the month, according to Thomson Reuters. Consumer credit was revised higher in July by $2 billion to $2.47 trillion.