US Consumer Loans Show Economic Caution

The growth of US consumer loans witnessed a significant slowdown in May, with non-revolving loans like installment loans for car purchases and college tuition falling for the first time since the pandemic began. The decline indicates that both lenders and consumers are becoming more cautious amid increasing signs of an economic slowdown. This cautious behavior is likely in response to the rise in the benchmark interest rate, which is at its highest level since 2006, making borrowing more expensive for households already impacted by price inflation.

Source: Bloomberg