Don't miss

Replay


LATEST SHOWS

THE INTERVIEW

Rwandan president claims 'no problem with France'

Read more

EYE ON AFRICA

Paul Kagame visits UNESCO HQ in Paris

Read more

MEDIAWATCH

Flamboyant US Congressman's Instagram Lands Him in Bother

Read more

THE WORLD THIS WEEK

Compromise buys Greece time and Jihadi John is unmasked (part 2)

Read more

THE WORLD THIS WEEK

Compromise buys Greece time and Jihadi John is unmasked (part 1)

Read more

#TECH 24

Drone vs. drone

Read more

FRANCE IN FOCUS

The future of agriculture

Read more

REVISITED

Yalta, the symbol of a new Cold War?

Read more

#THE 51%

Women in the workforce: IMF says closing the gender gap makes economic sense

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)