US consumers borrowed $25 billion more in September
By Alicia Wallace, CNN BusinessUpdated: Mon, 07 Nov 2022 20:51:06 GMTSource: CNN BusinessAmerican consumers borrowed another $25 billion in September, according to newly released Federal Reserve data,By Alicia Wallace, CNN Business
Updated: Mon, 07 Nov 2022 20:51:06 GMT
Source: CNN Business
American consumers borrowed another $25 billion in September, according to newly released Federal Reserve data, as higher costs led to further dependence on credit cards and other loans.
Economists were anticipating monthly growth of $30 billion, according to Refinitiv consensus estimates.
The data isn't adjusted for inflation.
Consumer borrowing in September increased at a seasonally adjusted annual rate of 6.4%. Revolving debt, which includes credit cards, grew by 8.7%.
"In normal economic times, that would be a huge jump," Matthew Schulz, chief credit analyst for LendingTree, wrote in a tweet. "However, it is actually the second-smallest increase in the past year."
Nonrevolving credit, which includes auto loans and student loans, increased by 5.7%.
Decades-high inflation has weighed heavily on Americans, outpacing wage gains and forcing consumers to rely more heavily on credit cards and their savings.
In the second quarter of this year, credit card balances saw their largest year-over-year increases in more than two decades, according to separate data from the New York Federal Reserve. The third-quarter household debt and credit report is set to be released Nov. 15.
The personal savings rate, which is the percentage of disposable income allocated for saving, not spending, was 3.1% in September, according to the Bureau of Economic Analysis. That's the second-lowest rate in more than 14 years.
This story is developing and will be updated.