Consumer credit fell by $3.3 billion in August, the Federal Reserve said in a report released Thursday afternoon.
The drop was about what economists predicted. Economists polled by Thomson-Reuters predicted a $3 billion decline in consumer credit, according to the Associated Press.
The fall in consumer credit was led by a plunge in revolving debt such as credit cards. Americans eliminated more than $5 billion, or 7.2 percent, of their total revolving debt.
On the other hand, non-revolving debt, including car and student loans, increased by 1.3 percent, or $1.7 billion.
Consumer credit data has been downbeat ever since the recession has prompted Americans to save more and spend less.
A decline in consumer credit weighs down the economy, as consumer spending generates about 70 percent of economic growth.
The drop was about what economists predicted. Economists polled by Thomson-Reuters predicted a $3 billion decline in consumer credit, according to the Associated Press.
The fall in consumer credit was led by a plunge in revolving debt such as credit cards. Americans eliminated more than $5 billion, or 7.2 percent, of their total revolving debt.
On the other hand, non-revolving debt, including car and student loans, increased by 1.3 percent, or $1.7 billion.
Consumer credit data has been downbeat ever since the recession has prompted Americans to save more and spend less.
A decline in consumer credit weighs down the economy, as consumer spending generates about 70 percent of economic growth.
