Consumer borrowing in the U.S. rose to the highest level since late 2022, according to a new survey.
Data from the Federal Reserve showed that total credit outstanding climbed by almost $25 billion, exceeding the expectations of all economists surveyed by Bloomberg.
Non-revolving credit climbed by almost $15 billion in March, the highest figure since mid-2023. Pending credit card debt increased by $10 billion, the most since 2024.
The report noted that household finances are being impacted largely by the increase in oil prices resulting from the war in Iran.
In fact, most Americans believe the U.S. made the wrong decision in using military force against Iran, while financial pressures and rising costs continue to shape public anxiety, according to a recent poll by ABC News, The Washington Post and Ipsos.
40% of respondents said they are worse off financially than when President Donald Trump took office in 2025, while 42% say they are about the same and just 17% say they are better off. A separate question shows 23% say they are falling behind financially.
Half of Americans in the survey say they expect gas prices to rise further over the next year. Many are already adjusting behavior, with 44% reporting they have cut back on driving, 42% saying they have reduced household spending, and 34% saying they have changed travel plans.
Bloomberg noted elsewhere in the report that it is unlikely that borrowers will see relief in the short term, as the Federal Reserve kept interest rates unchanged in its latest meeting.
However, the job market is still showing resilience. The U.S. economy added 115,000 jobs in April, more than twice the figure estimated by analysts. The unemployment rate remained steady at 4.3%, the Bureau of Labor Statistics noted on Friday.
Over 25% of the gains came from the healthcare sector, which added 37,000 roles. The transportation and warehousing sectors followed, increasing by 30,000 jobs. The retail industry gained 22,000 jobs.
The report also showed revisions to previous figures. February's was revised down to negative 156,000, while March's added 7,000 jobs.
The document also showed that hourly wages increased by 3.6% compared to April last year.
A cloudy aspect of the report was the number of people employed part time, which increased by 445,000 to 4.9 million. "These individuals would have preferred full-time employment but were working part time because their hours had been reduced or they were unable to find full-time jobs," BLS said.
"Employment showed little change over the month in other major industries, including mining, quarrying, and oil and gas extraction; construction; manufacturing; wholesale trade; financial activities; professional and business services; leisure and hospitality; and other services," the entity added.
Originally published on IBTimes
