Thursday, July 08, 2010

Consumer Credit declines sharply in May

by Bill McBride on 7/08/2010 06:51:00 PM

The Federal Reserve reports:

Consumer credit decreased at an annual rate of 4-1/2 percent in May 2010. Revolving credit decreased at an annual rate of 10-1/2 percent, and nonrevolving credit decreased at an annual rate of 1-1/2 percent.
Consumer Credit 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 3.9% over the last 12 months.

Revolving credit (credit card debt) is off 14.9% from the peak. Non-revolving debt (auto, furniture, and other loans) is off 1.5% from the peak. Note: Consumer credit does not include real estate debt.

Still working down the debt ... also the previously reported slight increase in April was revised to a $14.9 billion decrease in credit.