Consumer Credit Falls By Less Than Expected In June

Written by Jessica Clark on August 7, 2010 – 3:11 am

() - Consumer credit fell by much less than economists had expected in the month of June, according to a report released by the Federal Reserve on Friday, with an increase in non-revolving credit partly offsetting a decrease in revolving credit.

The Federal Reserve said that consumer credit fell by $1.3 billion in June following a revised $5.3 billion decrease in May. Economists had expected credit to decrease by about $5.7 billion compared to the $9.1 billion decline originally reported for the previous month.

Revolving credit, which largely reflects credit card debt, dropped by $4.5 billion in June after falling by $7.1 billion in the previous month.

On the other hand, non-revolving credit, such as car loans, increased by $3.2 billion in June following a revised $1.8 billion increase in May.

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