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Bloomberg
Bloomberg
Business
Reade Pickert

U.S. Consumer Credit Growth in March Was Slowest in Nine Months

U.S. consumer debt growth eased in March with the smallest increase in nine months, suggesting Americans were less motivated to spend despite the strong labor market.

Total consumer credit rose $10.3 billion from the prior month, missing all economist estimates in Bloomberg’s survey, after an upwardly revised $15.5 billion gain in February, Federal Reserve figures showed Tuesday. Revolving debt outstanding fell for the second time in four months while non-revolving credit advanced.

Key Insights

  • The increase, while unexpectedly weak, still points to an upbeat consumer. A healthy employment market along with steady wage gains will likely help households maintain spending in the coming months despite a soft start to 2019.
  • A separate report last week showed the labor market remains robust, with job growth topping estimates in April as the unemployment rate hit a fresh 49-year low.
  • Revolving credit outstanding, which includes credit card debt, decreased $2.18 billion after a $3.08 billion rise the prior month, indicating consumers ended the quarter more cautious about some borrowing.
  • Non-revolving debt outstanding climbed $12.5 billion after $12.4 billion. Such debt includes loans for school and autos.

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  • Credit expanded at a 3.1 percent annual rate after growing 4.6 percent in February.
  • Economists surveyed by Bloomberg had projected the credit gauge would rise by $16 billion.
  • Lending by the federal government, which is mainly for student loans, rose by less than $1 billion before seasonal adjustment.
  • The consumer credit report doesn’t track debt secured by real estate, such as home equity lines of credit and home mortgages.

--With assistance from Jordan Yadoo and Zoe Schneeweiss.

To contact the reporter on this story: Reade Pickert in Washington at epickert@bloomberg.net

To contact the editors responsible for this story: Scott Lanman at slanman@bloomberg.net, Jeff Kearns

©2019 Bloomberg L.P.

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