Consumer Credit Unexpectedly Shrinks For The First Time Since 2024 As Credit Card Rates Jump

Consumer credit took an unexpected dive in May, marking the first decline since 2024, bucking predictions of a $17.5 billion rise. This downturn coincides with a jump in credit card rates, which have become more expensive as gas prices surged and inflation rose, partly due to geopolitical tensions. This shift suggests consumers are tightening their belts, possibly bracing for economic headwinds. The significance lies in its potential impact on consumer spending, a crucial driver of economic growth, hinting at a possible slowdown.