US consumer spending drops again

Source: Press TV
http://www.presstv.ir/detail.aspx?id=134030§ionid=3510203



The Federal Reserve says US consumer credit has plunged in May, suggesting that Americans are still doubtful over taking on new debt.

The US Federal Reserve said on Thursday that the consumer credit fell by USD 9.15 billion in May, for the fourth consecutive month, much sharper than forecasts of a 2-billion-dollar decrease, AFP reported.

Revolving credit, mainly credit card accounts, was down USD 7.32 billion, while non-revolving loans for things like cars, boats and college education fell by USD 1.82 billion.

The financial crisis of 2007 contributed to the failure of key businesses, substantial financial commitments incurred by governments, and a significant decline in economic activity.

Although, the US economy is recovering from a severe recession that struck in December 2007-- which is considered by many economists to be the worst financial crisis since the Great Depression of the 1930s -- a full economic recovery still seems far ahead.

The recovery however, seems to be slowing based on a number of recent economic data release by the Federal Reserve and the Treasury Department.