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Consumer Credit Declines An Amazing $68.7 Billion

Published 06/07/2020, 02:31 AM
Updated 07/09/2023, 06:31 AM

Consumer Credit Index Monthly Chart

A Bloomberg chart shows consumer credit is down month-over-month by the largest amout ever.

The number comes from the Fed's Consumer Credit Report released Friday.

Consumer Credit April 2020

Consumer Credit

The above shot is from the credit report. I added the yellow highlights.

The lead chart is from this Tweet.

Tweet

That is from Bloomberg, but I cannot match it in Fred. This is what Fred depicts.

Change in Total Consumer Credit Owned

Change In Total Consumer Credit Owned

Using numbers from the Fed Table: 4,202.0 - 4,133.7 = 68.7

Other than the obvious spikes, the charts are the same. I believe the spikes are related to reclassification of student debt and other changes in reporting of Student Loans.

Change in Total Consumer Revolving Credit

Change In Total Consumer Revolving Credit

The change in revolving credit is -58.32 billion. That also matches the Fed report which has it at 1,078.1 - 1,019.8 = 58.3 Billion.

Total Revolving Credit

Total Revolving Credit

The above chart provides a needed perspective on the Fed report which shows revolving credit fell an annualized 64.9%.

Clearly, consumers have a lot more rebalancing to do. Equally clearly, the Fed wants to prevent just that.

$68.7 billion is an unprecedented decline, but what's coming (or doesn't) is more important.

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