Consumer credit rises by $6.8B in January, less than expected

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• U.S. consumers' debt from credit cards, auto and student loans and other non-mortgage debt increased at an annualized rate of 1.9% in January to $4.44T, a slower increase than in recent months and quarters, the Federal Reserve Board said in its latest consumer credit report.
• The $6.8B increase in consumer credit in January rose less than the $21.5B consensus. The 1.9% annualized rate compared with a 6.1% rate in December and 10.8% increase in November.
• Revolving credit, which includes credit cards, fell at an annualized rate of 0.3% to $1.04T in the first month of the year, while nonrevolving credit, which includes student loans and car loans, increased at an annualized rate of 2.5% to $3.40T.
• Previously (Feb. 20), January credit card delinquency, charge-off rates rose as metrics slowly normalize

Comments

[YSHI]

While spending stops, company's bottom line will shrink.