Total credit increased $25 billion from the prior month, Federal Reserve figures showed Monday. The median forecast in a Bloomberg survey of economists called for a $30 billion advance. The figures aren’t adjusted for inflation.
Revolving credit outstanding, which includes credit cards, rose $8.3 billion, the smallest increase in four months. Non-revolving credit, such as loans for school tuition and vehicle purchases, increased $16.7 billion, the most in three months.
Inflation has surged across the economy, driving up the costs of everything from necessities like electricity to more discretionary purchases like airfares.
As a result, some households are beginning to tighten their belts. Visa Inc (NYSE:V). and Mastercard Inc (NYSE:MA). both noted recently that spending growth had slowed. More broadly though, American households have proved to be largely resilient amid rapid price increases.
