Driven entirely by a drop in revolving credit, consumer credit unexpectedly fell $3.3 billion in July. This broke a streak of ten consecutive monthly increases.
June’s consumer credit was revised upwards from $6.5 billion, to $11.8 billion.
Consumer credit shrank at a 1.5% annualized rate, well below previous months.
July’s decline in consumer credit was driven entirely by a $4.8 billion drop in revolving credit. Revolving credit has recovered some, but still remains 17% below its prerecession peak.
Non-revolving credit has increased for eleven consecutive months but at a much smaller rate than previous months. Non-revolving credit grew only $1.6 billion in July, its smallest gain in nearly a year.
Read the Federal Reserve release.