by Bill McBride on 9/08/2009 03:10:00 PM
Tuesday, September 08, 2009
From MarketWatch: U.S. consumer credit down record amount in July
UU.S. consumers reduced their credit burden by a record amount in July, the Federal Reserve reported Tuesday. Total seasonally adjusted consumer debt fell $21.55 billion, or at a 10.4% annual rate, in July to $2.47 trillion. This is the sixth straight monthly drop in consumer credit. ... This is the record 11th straight monthly drop in credit card debt.Click on graph for larger image in new window.
This graph shows the year-over-year (YoY) change in consumer credit. Consumer credit is off 4.2% over the last 12 months. The previous record YoY decline was 1.9% in 1991.
Here is the Fed report: Consumer Credit
Consumer credit declined from $2,493.6 billion in June to $2,472.1 in July. Note: The Fed reports a simple annual rate (multiplies change in month by 12) as opposed to a compounded annual rate.
Note: Consumer credit does not include real estate debt.
Posted by Bill McBride on 9/08/2009 03:10:00 PM