Has the consumer spending spree finally hit the wall? With maxed out cards & crushing rates, consumers are spending less.
March, U.S. consumer credit saw a growth of $6.27 billion, falling short of the consensus forecast of $14.80 billion and showing a slowdown from February’s $15.02 billion, which was revised from $14.12 billion.
Total outstanding consumer borrowing increased from $5.05 trillion to $5.06 trillion compared to the previous month. On a seasonally adjusted basis, consumer credit experienced a 3.2% annual growth rate, slightly lower than the 3.4% rate recorded in February.
Revolving credit, encompassing credit card debt, saw a slight increase to $1,337.8 billion from $1,337.6 billion in February. Revolving credit grew at an annual rate of 5.7%, a decrease from the 10.2% rate observed in the previous month.
According to the Federal Reserve’s report, nonrevolving credit, including auto and student debt, rose to $3,721.1 billion from $3,715.0 billion. Nonrevolving credit exhibited a 2.2% annual growth rate compared to 0.9% in January.
The risk of loss in trading futures and/or options is substantial and each investor and/or trader must consider whether this is a suitable investment. Past performance, whether actual or indicated by simulated historical tests of strategies, is not indicative of future results.
