Consumer Credit Flat in July 2010

Consumer Credit decreased in July 2010. According to the Federal Reserve:

In July, total consumer credit decreased (seasonally adjusted) at an annual rate of 1-3/4 percent. Revolving credit decreased at an annual rate of 6-1/4 percent, and nonrevolving credit increased at an annual rate of 1/2 percent.

There is some seasonality in credit – but the New Normal and deleveraging has destroyed historical movements. Looking at the unadjusted data, consumer credit increased slightly.

Stepping back and graphing the data, the overall consumer credit has remained stable for the last 3 months.


If consumer credit’s decline has stopped, it is one economic headwind which has abated.