Total U.S. Consumer Credit Declines Further in April

According to the latest Federal Reserve’s G.19 Consumer Credit Report, consumer credit, excluding loads secured by real estate, decreased at a seasonally adjusted annual rate of 19.6%, through April of 2020. With revolving debt decreasing by 64.9% and non-revolving debt decreasing by 4%. Consumer credit totaled $4.1 trillion on a seasonally adjusted basis. This is a decrease of $69 billion from the month of March, with revolving debt decreasing by $58.3 billion, the largest on record, and non-revolving credit adding to the decrease by $10.5 billion. The month of April marked the first time since the end of 2015 for which total consumer credit declined. The current decline has its roots in the COVID-19 pandemic and efforts that were taken during the month of April to slow the spread of the virus down.