News & Resources

Second quarter of 2011 shows credit improvement among Americans

Aug 18, 2011 Brian Bradley

Although the economy is currently faltering, a study conducted by the Federal Reserve Bank of New York suggests that Americans may soon increase their credit card spending. The Reserve reported that in June, consumer credit increased at an annual rate of 7.75 percent. This increase is a sign that banks are willing to loan money to consumers, while the clients are paying their debts accordingly. "This is more evidence that the pace of consumer deleveraging that began in late 2008 has slowed," said Andrew Haughwout, vice president of Research and Statistics Group for FRBNY, in a statement. Other signs of debt improvement were seen between the first to the second quarter of 2011. Mortgage debt - which makes up more than 70 percent of consumer deficit - dropped 0.2 percent, while consumer debt decreased by 0.4 percent. One of the most telling signs of consumer credit improvement was the 10 million credit card accounts that were opened during the second quarter, boosting the total number of credit cards opened to approximately 390 million.