The Federal Reserve has just released its G.19 consumer credit data for March, showing a $10.172 billion seasonally adjusted month-over-month (MoM) increase, ahead of the expectation for a $9.387 billion increase. For the first quarter, consumer credit increased by a seasonally adjusted 1.5%, consisting of a 2.3% rise in revolving credit and a 1.2% rise in non-revolving credit.
What Do These Results Mean?
The higher-than-expected data, which includes credit card and auto borrowing, shows that consumers may be borrowing more in an attempt to front run higher prices caused by the tariffs. This could signal unease about the economic environment. The University of Michigan’s Index of Consumer Sentiment reflects this, as sentiment in April fell by 8.4% month-over-month and 32.4% year-over-year.
The unease has been reflected in the market, with the S&P 500 (SPX) down by 4.67% this year.
