Consumer Credit Growth Slows as Lending Standards Tighten: Kiplinger Economic Forecasts

It's due to high interest rates and banks implementing tighter lending terms on credit cards.

Hands with bills, money and credit cards.
(Image credit: Getty)

As the economy braces for a recession, consumer credit growth is beginning to wane. To help you understand what is going on and what we expect to happen in the future, our highly-experienced Kiplinger Letter team will keep you abreast of the latest developments and forecasts (Get a free issue of The Kiplinger Letter or subscribe). You'll get all the latest news first by subscribing, but we will publish many (but not all) of the forecasts a few days afterward online. Here’s the latest...

Higher interest rates are starting to chill consumer credit growth. Per the latest data, consumer debt levels are still on the rise, but the pace of growth is slowing. Outstanding balances for all types of consumer credit rose 0.2% in May, while year-over-year gains eased from 5.4% in April to 5.3% the next month. 

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Rodrigo Sermeño
, The Kiplinger Letter

Rodrigo Sermeño covers the financial services, housing, small business, and cryptocurrency industries for The Kiplinger Letter. Before joining Kiplinger in 2014, he worked for several think tanks and non-profit organizations in Washington, D.C., including the New America Foundation, the Streit Council, and the Arca Foundation. Rodrigo graduated from George Mason University with a bachelor's degree in international affairs. He also holds a master's in public policy from George Mason University's Schar School of Policy and Government.