The credit crunch is taking its toll on consumer credit which posted a record decline of $7.9 billion for November -- the third decline in four months. Revolving credit fell $2.8 billion, or 3.4 percent in the month, while nonrevolving credit fell $5.2 billion, or 3.9 percent. Declines in securitized assets are limiting available credit for the consumer.
Market Consensus Before Announcement
Consumer credit fell $3.6 billion in October, split between a $0.2 billion decline for revolving credit and a $3.4 billion decline for nonrevolving. The annualized percentage change in credit is minus1.7%. Both revolving and non-revolving credit contracted in October with losses centered in the latter and reflecting the collapse in vehicle sales.
Consumer credit Consensus Forecast for November 08: -$0.5 billion Range: -$5.5 billion to $3.7 billion