Last Update: 07-Oct-20 15:16 ET
- Consumer credit contracted by $7.2 billion in August (Briefing.com consensus $14.1 billion) after increasing an upwardly revised $14.7 bln (from $12.3 billion) in July.
- Nonrevolving credit increased by $2.2 bln in August to $3.159 trln.
- Revolving credit declined by $9.4 bln in August to $985.0 bln.
- Consumer credit decreased at a seasonally adjusted annual rate of 2.0% in August, with revolving credit decreasing at an annual rate of 11.25% and nonrevolving credit increasing at an annual rate of 0.75%.
- The key takeaway from the report is that August marked the sixth straight monthly contraction in revolving credit, which is something that hasn't happened since late 2010 - early 2011, underscoring the more restrictive credit stance adopted by lenders in the wake of the COVID shutdown and rise in unemployment.