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Fed credit survey shows decline in "discouraged" consumers


Reuters

July 17 (Reuters) - The number of U.S. consumers who needed
credit in the past year but were too discouraged to apply for it
fell in June to its lowest since at least 2013, though the
number of overall consumers that were rejected for loans
increased, the New York Federal Reserve said on Monday.
    The share of "too discouraged" credit applicants fell to 5.1
percent in June, down from 7.1 percent at the Fed's last survey
in February and the lowest level since the New York Fed began
its Consumer Expectations Credit Access Survey in October 2013.
    The proportion of respondents who were granted credit in the
past 12 months increased to 32.8 percent in June from 31.5
percent in February, while the amount of consumers who applied
for loans and were rejected increased to 10.8 percent from 8.5
percent in the same time frame, the survey showed.
    Demand for credit rose to 43.6 percent in June, up from 39.9
percent in February and the highest reading since the survey
began. This was based on broad based demand, but was especially
driven by a rise in applications by consumers aged 40 and below.
    Respondents aged between 41 and 49 primarily drove the
increase in rejected applications, the NY Fed said.
    Applications for credit card and auto loans both increased,
while demand for mortgage refinancing fell during the survey
period, the NY Fed said.

 (Reporting by Karen Brettell; Editing by Chizu Nomiyama)
 ((1 646 223 6274))

Keywords: USA FED/CONSUMERCREDIT



This article appears in: Stocks , World Markets , Economy , 401k , Retirement


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