Credit Card Debt Slides 5% in Surprise Pullback by Consumers

U.S. consumers slowed their credit card usage considerably in June, recording a 5 percent decline in revolving debt that surprised Wall Street.
Overall consumer credit, including student and auto loans, registered a 3 percent gain, the smallest expansion since October 2011.
June’s growth in loan balances – not including mortgages – was pegged at $6.46 billion by the Federal Reserve. Economists had forecast an increase closer to $11 billion.
Robust consumer credit can be a harbinger for economic growth.
Last month’s Fed report bolstered the markets as May recorded an 11 percent, or $8 billion, surge in overall consumer credit – the largest jump since the eve of the financial crisis in 2008.
Since lat 2010, consumer credit has been rebounding from the depths of the Great Recession.
Nonetheless, June saw the 10th consecutive monthly increase of overall consumer credit to $2.577 trillion.
Revolving debt, mostly credit card balances, dropped 5 percent to $865 billion.
Non-revolving balances – mostly auto, student and personal loans – increased 7 percent to $1.713 trillion.

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