US Credit Card Spending Declines as Consumers Tighten Budgets

Recent data shows a decrease in revolving debt, suggesting a shift in consumer spending habits amid high interest rates and inflation concerns.

Revolving debt, primarily from credit cards, decreased by 1.2% in August, marking the largest drop since 2021.
Total credit card debt reached a record $1.14 trillion earlier this year but saw a notable decline in August.
High interest rates and stricter lending standards are contributing to reduced credit card usage.
While consumer credit increased overall, the growth rate has slowed significantly compared to previous months.
Experts suggest that the decline may not indicate a long-term trend and could be a temporary adjustment in spending behavior.