U.S. consumers pull back sharply on credit-card use in March
By Greg Robb
Total consumer credit slows to $6.3 billion gain versus estimate of $14.8 billion
The numbers: Total consumer credit rose at a much slower pace in March, the Federal Reserve reported Tuesday.
Consumer credit rose at a 1.5% annual rate, down from a 3.6% rate in the prior month.
That translates into a $6.3 billion monthly gain in March, following a $15 billion gain in the prior month.
Economists surveyed by the Wall Street Journal had expected a $14.8 billion gain in March.
In the first quarter, credit rose at a 3.2% clip, faster than the 2.4% rate in the final three months of 2023.
Key details: Credit-card borrowing rose a slight 0.1% in March after a 9.7% gain in the prior month. That's the slowest pace since April 2021. Nonrevolving loans, mainly student and auto loans, rose 2% after a 1.4% gain the February.
Looking ahead: The sharp pullback in consumer borrowing raises red flags, said Will Compernolle, macro strategist at FHN Financial. More data was needed before making any sweeping statements about the health of the consumer, he added.
Market reaction: Stocks DJIA SPX were slightly higher in late afternoon trading on Tuesday while the 10-year Treasury yield BX:TMUBMUSD10Ywas down slightly to 4.463%.
-Greg Robb
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
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05-07-24 1537ET
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