Total Consumer Credit Declines for Second Month in a Row

According to the latest Federal Reserve’s G.19 Consumer Credit Report, which tracks consumer credit, which excludes loans secured by real estate, through May 2020, consumer credit decreased at a seasonally annual adjusted annual rate of 5.3% from the previous month. With revolving debt decreased by -28.6% and non-revolving debit increasing by 2.3%. Consumer credit totaled $4.1 trillion on a seasonally adjusted basis, with $996 billion in revolving debt and $3.1 trillion in nonrevolving debt. This is a decrease of $18 billion from the previous month, with revolving debt decreasing by $24 billion and non-revolving credit offsetting the decrease by $6 billion. This month is the second straight month in which total consumer credit declined. The decrease in consumer credit in May was less prominent compared to the decrease in April, which showed a record number in job losses and unemployment claims. The slightly less decrease correlates strongly with the increase in Consumer Confidence, which improved in June for the second straight month.