Consumer Credit Fell In June For The 21’st Month In A Row While Incomes Stayed About Even
Posted By thestatedtruth.com on August 6, 2010
Bill Gross calls it the new normal, where the consumer becomes a saver. He says artificial consuming i.e. borrow and spend is gone for a long time.Â
Americans cut credit-card use for the 21st straight month in June as static  job growth and a slowing economy turned spenders into savers. The national saving rate, meanwhile, rose, to 6.4%, from 6.3% in May and 6% in April.  The average hourly wages of U.S. employees rose four cents and the workweek grew slightly.
Consumer credit outstanding decreased at a seasonally adjusted annual rate of 0.7%, down $1.3 billion to $2.42 trillion in June, said the Federal Reserve on Friday. This report does not include Real Estate morgages.
The report showed revolving credit dropped $4.5 billion, or 6.5%, to $826.48 billion. The last time credit-card use increased was September 2008. Nonrevolving credit rose 2.4%; that category includes loans for cars, tuition and vacations, among other things.
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