Consumer borrowing in the United States experienced its slowest growth in May since November 2020, according to data released by the Federal Reserve on July 7. The report showed that total consumer credit rose by $31.5 billion in May, down from $38.1 billion in April. This was the lowest monthly increase since November 2020, when consumer credit rose by $29.8 billion.
The slowdown in consumer borrowing growth comes as the Federal Reserve is raising interest rates in an effort to combat inflation. Higher interest rates make it more expensive for consumers to borrow money, which can lead to a slowdown in spending.
The slowdown in consumer borrowing growth is also being driven by a number of other factors, including rising prices and concerns about the economy. According to a recent survey by the Conference Board, consumer confidence fell to a 16-month low in June. This suggests that consumers are becoming more pessimistic about the economy and are less likely to spend money.
The slowdown in consumer borrowing growth is likely to have a negative impact on the economy. Consumer spending is a major driver of economic growth, and a slowdown in spending could lead to a recession.