Riffrag Business & Finance Report

Consumer Credit in the U.S. plunged a record U.S. $ 17.5 billion in November after the unemployment rate close to the highest position in 26 years and banks restrict credit access.

According to the Federal Reserve reports consumer credit decline exceeds the October projection of U.S. $ 4.2 billion. With the decline of consumer credit to U.S. $ 2.46 trillion. While the median estimate of economists fell U.S. $ 5 billion.

Consumer credit was recorded using a credit card and other types such as the purchase of motor vehicles.

Number of workers fell 7.2 million since the recession began in December 2007 erode consumer spending. Fed policy tightening credit standards and reduced credit lines holding recovery.

“Unemployment is achieving double-digit erode consumer confidence and uncertainty caused the credit card payment delays. It’s never happened before credit card decline since the recession of the 80s,” said Chris Rupkey, chief financial economist of Bank of Tokyo-Mitsubishi UFJ Ltd. New York.

Consumer loans decreased 10 times in a row is the longest since 1943.

The Fed said revolving credit such as credit card down the largest U.S. $ 13.7 billion during November. While non-revolving debt, including auto loans and home run, off of U.S. $ 3.8 billion. The report did not mention the credit for real estate.

Automotive sales in the U.S. rose during November to 10.92 million, from 10.45 million in October.