Consumer credit growth in the US fell short of expectations in August, hampered by the biggest decline in revolving credit in nearly two years. According to data released by the Federal Reserve on Wednesday, consumer credit balances increased by 8.3 billion US dollars in August, the smallest increase in three months; the July increase was 17.7 billion US dollars after correction. Economist Peng estimated the median increase of $15 billion. The report did not include home mortgage loans. Credit card and other revolving credit balances fell by $4.8 billion, the biggest drop since November 2024. Non-revolving credit such as car loans and tuition loans increased by US$13.1 billion in August. According to industry data, car sales in August rose to the fastest level since April last year. Despite high prices, American consumers have maintained strong spending to support economic growth. However, wage growth has slowed, and the personal savings rate is at a four-year low. Low-income households and consumers who still have credit card arrears face the most obvious pressure. According to the Federal Reserve Consumer Credit Report, as of August, the average interest rate for credit card accounts requiring interest was 22.36%, the highest level in a year. The annual interest rate for a 60-month new car loan issued by commercial banks is 7.54%.

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