US consumer credit decreased $9.5 bn in August

Consumer credit in the US unexpectedly dropped in August by the most in over a year.

The $9.5 billion dip followed an $11.9 billion rise the last month, the Federal Reserve said on Saturday in Washington. Non-revolving credit, which includes student loans and financing for automobile purchases, slumped by the most in three years.

Decreasing credit shows American households are either continuing to pay down debt or lack the confidence to boost spending on non-essential goods.