2020.06.0519:33:00UTC+00U.S. Consumer Credit Nosedives $68.7 Billion In April

A report released by the Federal Reserve on Friday showed a breathtaking nosedive in U.S. consumer credit in the month of April.

The Fed said consumer credit plummeted by $68.7 billion in April after falling by a revised $6.9 billion in March. Economists had expected credit to decrease by $14.0 billion compared to the $12.1 billion slump originally reported for the previous month.

The steep drop in consumer credit came as revolving credit, which largely reflects credit card debt, cratered by $58.3 billion in April after plunging by $21.5 billion in March.

Non-revolving credit, such as student loans and car loans, also fell by $10.5 billion in April after climbing by $14.7 billion in the previous month.

Compared to the same month a year ago, consumer credit in April was down by 19.6 percent as revolving credit tumbled by 64.9 percent and non-revolving credit slid by 4.0 percent.