US Consumer Borrowing Cools as Credit-Card Debt Growth Slows
Bloomberg
Published Nov 07, 2022 03:26PM ET
Updated Nov 07, 2022 03:45PM ET
US Consumer Borrowing Cools as Credit-Card Debt Growth Slows
(Bloomberg) -- US consumer borrowing rose in September by less than expected, reflecting a smaller advance in credit-card debt outstanding.
Total credit increased $25 billion from the prior month, Federal Reserve figures showed Monday. The median forecast in a Bloomberg survey of economists called for a $30 billion advance. The figures aren’t adjusted for inflation.
Revolving credit outstanding, which includes credit cards, rose $8.3 billion, the smallest increase in four months. Non-revolving credit, such as loans for school tuition and vehicle purchases, increased $16.7 billion, the most in three months.
Inflation has surged across the economy, driving up the costs of everything from necessities like electricity to more discretionary purchases like airfares.
As a result, some households are beginning to tighten their belts. Visa Inc (NYSE:V). and Mastercard Inc (NYSE:MA). both noted recently that spending growth had slowed. More broadly though, American households have proved to be largely resilient amid rapid price increases.
Get The News You Want
Written By: Bloomberg
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.