Open

Coming up

Don't miss

Replay


LATEST SHOWS

IN THE PAPERS

Shifts in the propaganda war waged between Israelis and Palestinians

Read more

IN THE PAPERS

French MPs face quandary in pro-Palestinian rallies

Read more

THE INTERVIEW

Yezid Sayigh, Senior Associate at the Carnegie Middle East Center in Beirut

Read more

#TECH 24

Mind the Gender Gap : getting more women into the tech sector

Read more

INSIDE THE AMERICAS

Bolivian children: heading to work aged 10

Read more

WEB NEWS

Israel and Hamas battle online over public opinion

Read more

FOCUS

Can Chancellor Merkel's winning streak last?

Read more

FOCUS

Hunger in a fertile land...

Read more

DEBATE

Nigeria: One Hundred Days and Counting (part 2)

Read more

  • Live: Algerian jet with 116 on board 'crashes' in northern Mali

    Read more

  • ‘Many’ French passengers on board missing Algerian plane

    Read more

  • Iraqi parliament elects moderate Kurd as president

    Read more

  • Sudanese Christian woman sentenced to death arrives in Italy

    Read more

  • No end to fighting until Israel ends Gaza blockade, Hamas says

    Read more

  • Two foreign women shot dead in western Afghanistan

    Read more

  • At least 60 killed in attack on prison convoy near Baghdad

    Read more

  • Cycling is ‘winning the war on doping,’ says expert

    Read more

  • Ceasefire agreed for Central African Republic

    Read more

  • Can Jew-kissing-Arab selfie give peace a viral chance?

    Read more

  • In pictures: Thousands march for Gaza peace in Paris

    Read more

  • France charges Swiss bank UBS with tax fraud

    Read more

  • Israel faces heightened diplomatic pressure as Gaza violence rages

    Read more

  • Botched Arizona execution takes nearly two hours

    Read more

  • Bomb attacks leave scores dead in north Nigeria

    Read more

Business

Record plunge in consumer credit

Text by NEWS WIRES

Latest update : 2009-09-09

US consumer credit posted a record plunge in July, the sixth month of decline, and fell at an annualized rate of 10.4 percent, according to the Federal Reserve. But a lack of spending risk further damaging an economy significantly driven by output.

AFP - US consumer credit posted a record plunge in July, the sixth monthly decline, as Americans bridled spending amid rising unemployment and an ailing economy, Federal Reserve bank data showed Tuesday.
   
Outstanding consumer credit fell by a seasonally adjusted 21.5 billion dollars in July from June, the highest dollar-value decline since tracking of the data began in 1943.
   
Consumer credit fell at an annualized rate of 10.4 percent, the largest drop since a 16.3 percent decline in June 1975.
   
The July plunge far eclipsed the average analyst forecast of a 4.0-billion-dollar drop.
   
Consumers have hunkered down amid the long recession, saving more and spending less to cope with the downturn. But that trend could crimp the nascent recovery of the world's largest economy, where consumer spending drives two-thirds of output.
   
The last time there were six or more months of decline in consumer credit was in June-December 1991, during a recession.
   
 

Date created : 2009-09-09

COMMENT(S)