Consumer Credit Plunges in May, April Revised Downward
By JOSEPH LAZZARO
Americans’ use of credit unexpectedly plunged by $9.1 billion in May, a 4.5% annualized rate, the U.S. Federal Reserve announced Thursday. Equally significant, April’s consumer credit statistic was revised to a large $14.86 billion decrease, a substantial change from the previously-released $1.0 billion credit increase.
Analysts surveyed by Bloomberg survey expected consumer credit to fall by $2.0 billion in May. Consumer credit fell $5.2 billion in March.
With the April revision, May marked the fourth consecutive monthly drop in consumer credit, and the 18th decline in the past 20 months. In the past 12 months, total consumer debt has fallen 3.9% to $2.415 trillion from $2.514 trillion in May 2009.
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