WASHINGTON – Consumer credit fell $3.6 billion, or 1.8%, to $2.419 trillion in July, the sixth consecutive monthly decline, the Federal Reserve reported Wednesday.
Borrowing in June was revised higher to a decrease of $1 billion, or 0.5%, from a 0.7% decline, or $1.3 billion, reported last month. The total consumer credit decline for the second quarter ending in June was revised to a 2.5% decline from a 3.2% drop. Consumer credit fell 1.9% in the first quarter from a 1.8% drop reported last month.
Economists expected consumer credit to decline by $3.5 billion in July, according to the median estimate from Thomson Reuters.
July revolving credit, which includes credit card borrowing, fell by $4.4 billion to $827.8 billion.
Nonrevolving credit, which includes loans for cars and education among other items, inched up by $700 million to $1.591 trillion, the smallest increase in three months.
Consumer loans held by commercial banks increased slightly by $500 million to $1.148 trillion in July.
Earlier today, the Federal Reserve reported in the Beige Book that some lenders are tightening credit as a result of the Dodd-Frank Wall Street Reform and Consumer Protection Act.
