Consumer Credit Falls in August

The Federal Reserve reported on October 7 that consumer credit contracted at an annualized pace of 1.7 percent in August.

Revolving credit fell at annual rate of 7.2 percent in August to $822.2 billion. This is the 24th consecutive monthly decline in outstanding revolving credit. Revolving credit is almost 16 percent below its August 2008 peak at $973.6 billion.

On the other hand, nonrevolving credit grew at annual rate of 1.2 percent in August to $1,592 billion. This was the fourth monthly increase in outstanding nonrevolving consumer credit.