The consumer credit in the United States declined at an annual rate of 1.7 percent in May, the first drop since November 2003, the US Federal Reserve (Fed) reported on Friday.

The 1.7 percent rate of decline in May followed a 0.7 percent gain in April while the US consumer credit increased at a rate of 4.6 percent in the first quarter of this year.

The report showed that loans on credit cards and other types of revolving credit increased by a rate of 1.1 percent in May following a 0.9 percent decline in April and a drop of 1 percent in March.

Demand for non-revolving debt, a category that includes car loans and loans for boats and recreational vehicles, declined by an annual rate of 3.4 percent in May after a 1.5 percent increase in April.

The total US consumer credit declined to 2.1274 trillion dollars in May, a drop of 3 billion dollars compared with the previous month.

The consumer spending accounts for about two-thirds of the US economic activities and is the main force in pushing the economy forward. Some analysts said that the drop of US consumer credit in May is a sign that consumers are showing some caution about piling up new debt.

Source: Xinhua