translated from Spanish: U.S. consumer credit fell for the first time in 8 years

Consumer credit in the United States fell in March for the first time in more than eight years, and credit card status fell by its largest margin in three decades, the Fed said Thursday. The Fed’s report is the latest indication of how the coronavirus pandemic is affecting the U.S. economy. Consumer credit fell by 12 billion in March, the first time overall debt has fallen since August 2011, according to the central bank. In terms of percentage, the decline was 3.4%. In the category that covers credit cards, the downgrade was 28.2 billion — 30.9% –, the highest in percentage since January 1989.In the category that covers auto loans and student loans, there was a 16.1 billion hike — 6.2%. Changes in consumer credit are closely monitored to detect signs of how willing households are to borrow to finance their expenditures, which account for 70% of economic activity. Economists believe that, due to the loss of millions of jobs and the collapse in economic activity as a result of measures implemented to contain the coronavirus pandemic, there will be a greater weakness in consumer spending in the coming months. The economy as a whole contracted at an annual rate of 4.8% in the first quarter, the highest decline in a decade, as pandemic closures began in mid-March. Consumer spending fell at a rate of 7.6% in the quarter, its biggest decline since 1980.Economists forecast even worse results for the current quarter, and the expectation is that GDP will fall by a record of 40%. The decline of $12 billion in consumer credit left the total at $4.21 trillion. The Fed’s monthly consumer credit report does not include mortgages or other loans secured with real estate.

Original source in Spanish