Consumer credit in the United States has declined for the fi

New York, July 12 (Xinhua) -- Data released by the Federal Reserve recently showed that consumer credit in the United States experienced its first monthly decline since 2024 in May, indicating that American consumers are becoming cautious in borrowing under inflationary pressure and reflecting economic concerns.

 

The report shows that the total amount of consumer credit in the United States decreased by $182 million in May. Among them, the balance of revolving credit such as credit cards has experienced the largest decline since 2024.

 

According to an article on Microsoft's online website, the decrease in consumer credit is mainly due to high annual interest rates on credit cards, which have pushed up credit costs. This change indicates that some households are reducing their dependence on high interest debt, and the trend of credit tightening may affect non essential consumption in the coming months. If consumer credit continues to tighten, it may ultimately affect housing demand and other large consumer expenditures.

 

KPMG senior economist Benjamin Hughes believes that due to current US interest rates and inflation levels being much higher than before the pandemic, most consumers have become more cautious when using credit.

 

According to data released by the US Department of Commerce on June 25th, the personal consumption expenditure price index in May increased by 4.1% year-on-year, higher than April's 3.8% and the highest level since May 2023, highlighting the upward pressure on US prices caused by the Iran conflict.