A consumer uses a credit card at a store in Burlington, N.J., on Feb. 5, 2025. Samira Bouaou/The Epoch Times
Americans’ use of credit cards in the 12 months through August saw its steepest contraction since the pandemic recession, suggesting that the U.S. consumer sector may be shifting from credit-driven resilience toward a more cautious footing.
According to the Federal Reserve’s G.19 Consumer Credit report for August, total consumer credit grew at a negligible 0.1 percent annual rate, a sharp deceleration from 4.3 percent in July. Revolving credit—primarily credit cards—fell at a 5.5 percent annualized rate, while nonrevolving credit, such as auto and student loans, rose 2 percent, partly offsetting the decline.
