Tax & Spend
US Consumer Borrowing Unexpectedly Drops on Non-Revolving Credit
Non-revolving credit, such as loans for school tuition and vehicle purchases, plunged a record $30.3 billion.
Photographer: Patrick T. Fallon/Bloomberg
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US consumer borrowing unexpectedly declined in August by the most in more than three years, reflecting a record slump in non-revolving credit tied to student loan forgiveness by the Biden administration.
Total credit decreased $15.6 billion, Federal Reserve data showed Friday. The data aren’t adjusted for inflation. The median estimate in a Bloomberg survey of economists called for a rise of $11.7 billion.