US consumer credit unexpectedly falls in Feb
WASHINGTON, April 7 (Reuters) – U.S. consumer credit unexpectedly tumbled in February, reversing the prior month’s surprise increase, as households refrained from taking on new debt in favor of deleveraging.
February’s total consumer credit outstanding dropped $11.51 billion or at a 5.62 percent annual rate to $2.45 trillion, the Federal Reserve said on Wednesday.
January’s figures were sharply revised upward to show a $10.64 billion increase, previously reported as a $4.96 billion rise. Analysts polled by Reuters had forecast consumer credit would rise by $0.5 billion in February.
Analysts said households’ continued reduction of their debt load was unlikely to have an impact on consumer spending, which normally accounts for 70 percent of U.S. economic activity. Read more: Reuters.com
