Consumer credit expected to keep falling
U.S. consumers, who have been cutting their use of credit from all-time highs last year, are likely to keep reducing commitments if the trend continues in the latest report for August due tomorrow from the Federal Reserve.
Total consumer credit, measured with revolving and nonrevolving accounts, has fallen by $106.1 billion, or 4.1 percent, since the third quarter of 2008 to 2.47 trillion in July 2009, as reported last month by the Fed.
The fall from June to July alone was $21.5 billion.
Since the third quarter of 2008, total revolving credit, which includes credit cards, has fallen 7.1 percent to $905.6 billion.
Since the second quarter of 2008, total nonrevolving credit, which includes auto loans and other closed end loans, was down 2.5 percent to $1.5665 trillion.
The report does not include real estate loans.
Financial institutions reporting include commercial banks, finance companies, credit unions, federal government and Sallie Mae, savings institutions, nonfinancial businesses and pools of securitized assets.
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