The Fed Reports Consumer Credit Drops in August

The latest G-19 Consumer Credit Reports from the Federal Reserve covers consumer credit, excluding loans secured by real estate, the end of August 2020. According to the report consumer credit decreased at a seasonally adjust annual rate (SAAR) of 2% from July. With revolving debt dropping by an amazing -11¼% and nonrevolving debt increasing by ¾%. On a SAAR, consumer credit totaled $4.1 trillion, broken down as $ 985 billion in revolving debt and $ 3.2 trillion in nonrevolving debt. This represents a decrease of $7 billion from the July totals and marks the sixth consecutive month of declines in the value of open-ended credit.