U.S. consumer credit growth slows considerably in May
May saw the weakest increase in U.S. consumer credit in four months as people reduced their use of credit cards
a pattern that, if it continues, might limit consumer spending amid rising recessionary fears.
Following an upwardly revised $36.76 billion increase in April, total consumer credit climbed by $22.35 billion on Friday, the smallest gain since January.
After a previously reported $38.07 billion increase in April, economists surveyed by Reuters had predicted a $31.90 billion increase in consumer credit.
Revolving credit, a key indicator of credit card usage, increased by $17.96 billion the month before but only by $7.419 billion this month.
The minor increase in consumer spending in May may be partially explained by the decrease in revolving credit
The U.S. central bank has raised its policy rate by 150 basis points since March.