Nice chart on Consumer borrowing via Asha Bangalore of Northern Trust’s Global Economic Research:
Consumers Continue to Borrow Less but Pace of Decline is Notable
Consumer credit declined at an annual rate of 1.5% in May, after a 7.8% plunge in April and a 7.3% drop in March. The consumer deleveraging trend commenced in August 2008 (see chart 5). The small decline in borrowing after a larger drop in prior months suggests that household balance sheets are mending which is a big plus for consumer spending, albeit not immediately. The important point is that the preferred trend in consumer borrowing is emerging.