INSIGHT · US
US revolving credit growth paused in May; Fed data shows annualized decline of 4.7%
After two months of strong growth, US consumer credit card balances and other revolving credit fell at a 4.7% annualized rate in May, per Federal Reserve data. Signals potential consumer credit retrenchment or temporary seasonal correction.
WHY IT MATTERS
Credit card revenue and charge-offs drive BFSI profitability. A sustained revolving-credit contraction pressures net interest margins and signals early recession risk. Banks must stress models on slower origination and higher delinquency.
Source: PYMNTS · 2026-07-08