(Kitco News) - U.S. consumer borrowing increased by 1.5% in March, much lower than the rate of increase seen in recent months, helped by a significant moderation in credit card debt.
Consumer credit increased by $6.27 billion in March, following a revised $14.12 billion increase in February, the Federal Reserve announced Tuesday. The number was much lower than expectations, as the consensus of economists was for a $15 billion increase.
Revolving credit, which includes credit cards, rose $152 million in March, the smallest rise since credit card debt declined in 2021. Non-revolving credit, including school and vehicle loans, rose by $6.1 billion.
In quarterly terms, consumer credit increased at a seasonally adjusted annual rate of 3.2% during Q1 2024. Revolving credit increased at an annual rate of 5.7 percent, while nonrevolving credit increased at an annual rate of 2.2 percent during the quarter.
The lower-than-expected consumer debt report is very good news for markets, as many economists have worried that U.S. consumers were approaching the breaking point as they struggled under the combination of higher prices and higher interest rates.
Spot gold continues to trade near the bottom of its range on the day, last trading at $2,312.85 per ounce, down 0.48% on the session.
