US consumer credit contracts in March
The Federal Reserve is reporting that Mark consumer credit fell by $-12.0 billion versus an estimate of plus $15 billion.
- Revolving credit fell $-28.18 billion. Mostly credit card debt
- nonrevolving credit rose by $16.13 billion. Nonrevolving debt includes auto loans and school loans
In February consumer credit grew by the most in 7 months by $22.3 billion.
The tumbling consumer credit was the lowest since February 2010. The low point during the financial crisis saw consumer credit contract by $-18.53 billion in June 2019.
Consumers seemed to have tightened the purse strings quickly as a result of the coronavirus.. Since this was the decline for March, I would expect an even further decline in April as the shut down went into full effect.
Consumers at turned off the spigot
