Tuesday, December 9, 2008

Consumer Credit Drying Up

A delayed data point from last week. Bloomberg reported:

The pace of borrowing by U.S. consumers dropped in October for the second time in three months, led by a decline in financing for automobile purchases.

Consumer credit fell by $3.5 billion, or 1.6 percent at an annual rate, to $2.578 trillion, according to a Federal Reserve report released today in Washington. In September, credit increased by $6.7 billion, less than initially estimated.

Non-revolving debt, including auto loans and mobile home loans, decreased by $3.4 billion in October, according to the Fed’s statistics. Revolving debt, such as credit cards, dropped by $182 million.

Source: Federal Reserve

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