Consumer Credit Declines; Economy Reacts?

Consumer credit outstanding declined by 3.7% in the month of August. This is an obvious sign that the credit crunch has spilled over into the consumer segment of the economy. According to Argus Research:

The decline was the result of a 0.8% drop in revolving, or credit card, debt and a 5.4% plunge in nonrevolving debt. Miserable auto sales are the explanation for the decline in nonrevolving activity.

click to enlarge

Source: Argus Research ($)

 The big question is what impact will this have on the economy going forward.

Comments

[OilyGasMiner:]

Dave I don't think we needed Argus to tell us about consumer credit I could have showed you my bank statements or my portfolio. ;)

2008 Oct 15 12:41 PM