U.S. consumer debt had the second-biggest decline on record in April, the Federal Reserve said Friday.
Consumer credit fell $15.7 billion, or 7.4% at an annual rate, to $2.52 trillion, the Fed said. Credit shrank by a record $16.6 billion in March, more than previously estimated, the central bank said.
Economists had forecast consumer credit would drop $6 billion in April, according to the median of 29 responses in a Bloomberg News survey. The estimates ranged from a $9 billion drop to a gain of $1.5 billion. The Fed had initially reported that consumer credit fell $11.1 billion in March.
Revolving debt, such as credit cards, declined $8.59 billion in April, the central bank reported. Nonrevolving debt, including auto loans and mobile home loans, fell by $7.09 billion. The report does not cover borrowing secured by real estate.