Importance Score: 75 / 100 🔴
US Consumer Credit Declines Unexpectedly in February, Federal Reserve Data Shows
WASHINGTON, D.C. – New data from the U.S. Federal Reserve indicates an unforeseen decrease in consumer borrowing for February. The report, released recently, details a seasonally adjusted contraction in total consumer credit, diverging from economists’ forecasts and marking a shift from the previous month’s expansion. This change is reflected in both revolving credit, which includes credit cards, and non-revolving credit, such as auto and student loans.
Change in Consumer Credit from Prior Month (Millions of USD)
The Federal Reserve’s data outlines the shifts in consumer credit from January to February.
- Consumer credit: A decrease of $810 million in February, compared to an increase of $8,901 million in January and a previously reported increase of $18,084 million.
- Revolving credit: An increase of $128 million in February, down from $6,553 million in January and a previous figure of $8,986 million.
- Non-revolving credit: A decrease of $938 million in February, contrasting with an increase of $2,348 million in January and $9,098 million previously.
Percent Change in Consumer Credit at Annual Rate
The year-over-year percentage changes provide further context to the monthly fluctuations in consumer credit.
- Consumer credit: Decreased by 0.2% at an annual rate in February, compared to a 2.1% increase in January and a previously reported 4.3% increase.
- Revolving credit: Increased by 0.1% at an annual rate in February, a significant drop from the 6.0% increase in January and the prior 8.2%.
- Non-revolving credit: Decreased by 0.3% at an annual rate in February, following a 0.8% increase in January and a previously noted 3.0% rise.
Economist Forecasts Missed Mark
Analysts had anticipated a substantial increase in U.S. consumer credit for February. A Reuters survey of economists predicted a $15.00 billion surge in U.S. consumer borrowing for the month. The reported figures reveal a notable deviation from these expectations, suggesting a potential shift in consumer financial behavior.