Consumer credit grew by $9.06 billion in September, less than expected and a considerable rise from the $15.8 billion dip in August, according to Seeking Alpha.
- Economists had predicted a $10.0 billion increase.
What’s going on: “Totaling outstanding consumer borrowing of $4.98 [trillion] edged up from $4.97 [trillion] in the prior month. On a seasonally adjusted basis, consumer credit increased at a 2.2% annual rate in September, falling short of the 3.8% ascent in August.”
- Revolving credit—such as credit card debt—rose at an annual rate of 8.6% to $1.29 trillion.
- Meanwhile, nonrevolving credit—such as car and student loans—declined at an annual rate of 2.4%, to $3.69 trillion.
What it means: “Economists note that it is getting more expensive to borrow money as the Fed has raised interest rates and banks have tightened standards,” MarketWatch reports. “As a result, consumers are expected to be more reluctant to use credit cards.”