Consumer credit drops in August

Reuters

WASHINGTON (Reuters) - U.S. consumer credit posted its largest decline since April 2010 in August, according to a Federal Reserve report on Friday that suggested consumers were reluctant to hold more debt.

Consumer credit fell $9.50 billion in August after rising $11.92 billion in July, the report said. That was below economists' expectations for a $7.75 billion increase.

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Revolving credit, which mostly measures credit-card use, dropped $2.27 billion in August after falling $3.56 billion in July. Nonrevolving credit, which includes student loans and car loans, fell by $7.23 billion, the first decline since May 2010, after rising $15.48 billion in July.

(Reporting by Rachelle Younglai, Editing by Andrea Ricci)