Consumer Credit/Belt tightening continues

By Peter Boockvar - October 7th, 2009, 3:16PM

Consumer Credit outstanding on a seasonally adjusted basis in August fell by $12b, $2b more than expected but July didn’t fall as much as initially reported by $2.6b. It’s the 10th month in the past 11 that has seen declines. Revolving credit (mostly credit cards) fell by $9.9b and nonrevolving fell by $2.1b, a sharp improvement from the $16.6b drop in July and $10.6b in June but that is mostly due to the clunker program. The total amount outstanding at $2.46t is the lowest since July ’07. A thriftier consumer, debt paydown, cut credit lines and rising unemployment are all combining to reduce the use of consumer credit to purchase things.

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Category: MacroNotes.

Comments

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data, ability to repeat discredited memes, and lack of respect for scientific knowledge. Also, be sure to create straw men and argue against things I have neither said nor even implied. Any irrelevancies you can mention will also be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

2 Responses to “Consumer Credit/Belt tightening continues”

Pat G. Says:
October 7th, 2009 at 6:44 pm
I am not sure the cause is either because consumers are weary of taking on more debt or the banks are weary of lending to consumers. It’s probably a little of both. Now, if only the USG could learn from the consumers’ example. This country really is bass ackwards.
crosey Says:
October 8th, 2009 at 8:33 am
I love to see leverage dropping. Our future should be built on the foundation of our ability to save money, not borrow money.