Observers of the decline of consumer credit card receivables will gain little solace from the Fed’s report on July consumer credit. July revolving consumer credit outstandings declined at an annualized rate of -6.3%. Revolving outstandings are already down an estimated net -4.4% in July from Q4 2009. For perspective, the Fed’s G19 revolving credit was down -9.6% in all of the watershed year of 2009.
Non-revolving consumer credit, predominantly installment loans including auto loans, eked out an annualized growth rate of 0.6% for July. This indicator has been flat to slightly positive thus far in 2010, suggesting continued softness in that consumer lending segment.
As a note to readers, consumer credit cards are the main contributor to the Fed’s G19 revolving credit estimate. The Fed’s estimates are subject to revision in future months.
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