U.S. consumers are continuing to have a hard time accessing credit, as seen in a Federal Reserve report Thursday, which revealed that consumer credit declined for the second consecutive month.
U.S. consumer credit fell by $7.9 billion in November to $2.570 trillion, according to central bank data. As a percentage, consumer credit fell at an annual rate of 3.7%, compared to the 1.3% drop seen in October and the 3.1% increase in September.
The change was below the consensus expectation for no increase. Revisions show that consumer credit in October rose less than expected at $2.8 billion, compared to the initial $3.5 billion decline.
Credit card and other revolving debt fell by 3.4% annually, or $2.8 billion. Non-revolving borrowing - such as auto, personal, or student loans - fell by 3.9%, or $5.2 billion.
By Steve Stecyk and edited by Sarah Sussman
©CEP News Ltd. 2009