Consumer credit most likely dropped in August, weighing down a battered US economy and delaying any chances of a strong recovery, economists surveyed by Thomson Reuters said.
The drop in consumer credit should be about $3 billion in August, the economists said, a slightly smaller contraction compared to the $3.6 billion reduction in July.
The aggregate amount of money borrowed by consumers on lines of credit has been on the decline since the recession prompted Americans to spend less and save more.
Americans have become increasingly parsimonious with their credit after the recession wiped out savings and jobs, and banks beefed up their lending standards.
If consumer credit numbers are what the analysts say they will be, then August would mark the 18th time in the past 19 months that consumer credit has taken a hit.
The official report on consumer credit will be released by the Fed on Thursday at 3 p.m. ET. It will include data on debt such as credit cards and car loans, but not mortgages or home equity lines of credit.
The drop in consumer credit should be about $3 billion in August, the economists said, a slightly smaller contraction compared to the $3.6 billion reduction in July.
The aggregate amount of money borrowed by consumers on lines of credit has been on the decline since the recession prompted Americans to spend less and save more.
Americans have become increasingly parsimonious with their credit after the recession wiped out savings and jobs, and banks beefed up their lending standards.
If consumer credit numbers are what the analysts say they will be, then August would mark the 18th time in the past 19 months that consumer credit has taken a hit.
The official report on consumer credit will be released by the Fed on Thursday at 3 p.m. ET. It will include data on debt such as credit cards and car loans, but not mortgages or home equity lines of credit.
