Consumer Credit Decreases By $12 Billion In August

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Consumers continued to reduce their debt in August, according to a report released by the Federal Reserve on Wednesday, with consumer credit falling for the seventh straight month.

The report showed that total consumer credit fell by $12 billion to $2.463 trillion in August from $2.475 billion in July. Economists had been expecting a decrease of $10 billion.

With the monthly decrease, total consumer credit decreased at an annual rate of 5.8 percent in August compared to a 9.1 percent annual rate of decline in July.

Revolving credit, such as credit-card debt, fell by $9.9 billion to $899.4 billion, reflecting a 13 percent annual rate of decline.

Non-revolving credit, such as auto loans, personal loans and student loans, fell by $2.1 billion to $1.563 trillion in August, decreasing at an annual rate of 1.6 percent

Consumers continued to reduce their debt in August, according to a report released by the Federal Reserve on Wednesday, with consumer credit falling for the seventh straight month. The report showed that total consumer credit fell by $12 billion to $2.463 trillion in August from $2.475 billion in July. Economists had been expecting a decrease of $10 billion. (Market News Provided by RTTNews)