Americans’ Credit Card Debt Growth Slowest In 4 Months, Brace For Post-Midterms Plunge

US Consumer Credit rose less than expected in September (the latest data) (+$24.98bn vs +$30bn exp) as the borad trend of slowing growth in total consumer credit continues…

The slowing growth appears to have been driven by a big drop in the growth of revolving consumer credit (i.e. credit cards), which rose just $8.323bn in September while non-revolving debt rose $16.65bn. That is the smallest increase in 4 months…

Revolving debt continues to hit new record highs – as the savings rate plummets to multi-decade lows – as Americans are forced to use their plastic to maintain living standards…

But September’s slowdown in the growth of revolving debt might suggest that even the endless consumption needs of the American consumer may have bumped up against the wall of bank credit risk constraints.

Simply put, now that the midterms are out of the way, the maintenance of the fake impression that all is well must no longer be maintained.

Now, we suggest you panic.