US Consumer Credit Falls $182M in May, First Drop Since November 2024
US consumer credit unexpectedly fell $182 million in May, the first monthly decline since November 2024, driven by a sharp drop in revolving credit (credit cards) while non-revolving credit rose modestly.
US consumer credit decreased by $182 million in May, significantly below the expected $17.5 billion increase and reversing April's $20.8 billion gain.
Revolving credit, which includes credit cards, plunged $5.3 billion — the second-largest monthly drop since November 2020 — following increases of $11.5 billion in April and $10.7 billion in March.
Non-revolving credit (auto and student loans) rose $5.1 billion, the smallest monthly increase since February. Meanwhile, the average credit card interest rate climbed to 22.15%, near a record high, raising questions about whether consumer borrowing is reaching a tipping point.
Source: The Kobeissi Letter