8 November 2022 | Other

US consumer lending slows down

In September, the indicator of consumer borrowing in the United States showed a smaller increase than expected, which indicates a decrease in outstanding credit-card debt.

According to the Fed's data released on Monday, total credit increased by $25 billion from the previous month. However, economists expected to see more growth, their average forecast value was at the level of $30 billion.

For the first time in the last four months, revolving credit outstanding that includes credit cards, showed the smallest growth, increasing by $8.3 billion, while non-revolving credit that consists of student and auto loans, rose $16.7 billion, reaching the highest level in the last three months.

The spike in inflation has driven up prices not only for necessities, such as electricity, but also for discretionary purchases, including, for example, airline tickets.

In this regard, individual households are trying to tighten their belts. Visa Inc. and Mastercard Inc. have paid attention to the slowing growth in spending in recent times. And yet, it can be said that US households have shown a high resilience to a sharp increase in prices.

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