Borrowing by consumers slowed in October to $7.2 billion from $15 billion in September. That was the first time it has slowed since the economic recovery from the shutdown in March. The experts expected consumer debt to rise to $17 billion. That is a stark difference. Credit card debt fell 6.7% after rising 3.2% in September. Non-revolving credit, typically auto and student loans, rose 4.8%.
Spending by the consumer is the driver of the economy and the slowdown in credit likely reflects a worry over the pandemic. On the other hand, the saving rate has risen sharply and that bodes well for future economic growth. Credit card balances have fallen $76 billion in the second quarter and $10 billion in the third.
Looking beyond the pandemic, the economic picture looks good. Time to get vaccinated!