by Calculated Risk on 6/07/2010 03:00:00 PM
Monday, June 07, 2010
Consumer Credit increases slightly in April
The Federal Reserve reports:
Consumer credit increased at an annual rate of 1/2 percent in April 2010. Revolving credit decreased at an annual rate of 12 percent, and nonrevolving credit increased at an annual rate of 7 percent.
![Consumer Credit](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjdlJWbnyCYRKSfaq3d8tDfUuWEm4efDAI-ddPKn8Yask7qVYIj4ep1k5XfG3UH62XYkbF9PbtTN4n6-xryaqCbHQLaC6eGyVnrHMRynH6YpmvlnQmb90s9h5wjxDh5BJVv37D5/s320/ConsumerCreditApril2010.jpg)
This graph shows the year-over-year (YoY) change in consumer credit. Consumer credit is off 3.2% over the last 12 months.
Note: The Fed reports a simple annual rate (multiplies change in month by 12) as opposed to a compounded annual rate. Consumer credit does not include real estate debt.
Usually there is a fairly sharp increase in consumer credit during a robust recovery - but that isn't happening this time because household balance sheets are still a mess. Just another reminder that the recovery will be sluggish and choppy ...