Consumer borrowing sank in May by $9.1 billion, or 4.5%, and borrowing for April was revised downward as commercial bank lending retreated, the Federal Reserve Board reported today.
Consumer credit for April was revised to show a decline of $14.9 billion instead of the $1 billion increase initially reported in June.
Economists expected consumer credit to decline by $1.9 billion in May, according to the median estimate from Thomson Reuters.
Consumer credit for March was revised upward to show a decline of $5.1 billion instead of the $5.4 billion decline initially reported last month.
Consumer credit has declined four consecutive months. Borrowing increased by $1.6 billion in January, breaking a string of 11 monthly declines.
May’s revolving credit, which includes credit card borrowing, fell by $7.4 billion, or 10.5%. Nonrevolving credit, which includes loans for cars and education among other items, fell by $1.8 billion, or 1.4%.
Consumer loans held by commercial banks fell by $6.2 billion, or 0.5%, in May.
