FX.co ★ US Consumer Credit Unexpectedly Falls

In February 2025, the total consumer credit in the United States fell by $0.81 billion, marking the first decline since November of the previous year. This decrease followed a downwardly revised increase of $8.9 billion observed in January and was significantly below the anticipated market forecast of a $15.2 billion rise. On a seasonally adjusted annual rate basis, this represented a 0.2% reduction in consumer credit, indicating a notable reduction in credit card balances, coupled with a decrease in motor vehicle and other nonrevolving loans. Specifically, revolving credit, which encompasses credit card debt, saw a modest increase of $128 million, growing at an annual rate of 0.1%. Conversely, nonrevolving credit, which includes loans for vehicle purchases and educational expenses, experienced a decline of $938 million, marking its first drop in nearly a year, with a 0.3% annual rate of decrease.