INSIGHT · US
US consumer credit growth halves month-on-month, signals tighter borrowing appetite
Federal Reserve data released Wednesday show consumer credit expanded at 1.9% annualized in August, down from 4.1% in July (revised) — the slowest pace in recent months. Consumers are easing off adjustable revolving credit.
WHY IT MATTERS
Slowing consumer credit signals demand-side caution that may reduce card portfolio yields and increase default risk; retail banks should expect tighter credit cycles and rising loss-adjustment reserves.
Source: PYMNTS · 2026-10-07