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Total consumer credit increased by $22.35 billion, the smallest
since January, after rising by a downwardly revised $36.76
billion in April, the Federal Reserve said on Friday.
Economists polled by Reuters had expected consumer credit to
climb $31.90 billion after a previously reported $38.07 billion
advance in April.
Revolving credit, which mostly measures credit-card usage, rose
only by $7.419 billion after increasing $17.96 billion in the
prior month. The slowdown in revolving credit could partially
explain the modest gain in consumer spending in May.
With annual consumer prices surging at a rate last seen more
than 40 years ago, some Americans have been turning to credit
cards to pay for essentials like gasoline and food.
Rising interest rates and mounting fears of a recession as the
Fed aggressively tightens monetary to cool inflation could be
discouraging some from taking on too much debt.
The U.S. central bank has raised its policy rate by 150 basis
points since March.
Nonrevolving credit, which includes auto loans as well as
student loans made by the government, increased by $14.93
billion in May. That followed a $18.80 billion rise in April.
(Reporting by Lucia Mutikani; Editing by Sandra Maler)
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