Oct. 8, 2004 – Consumers cut back on borrowing in August by the largest amount since 1990, as confidence in the economy dropped sharply.
Consumer credit dropped by 1.4 percent, or $2.4 billion, that month. Meanwhile, consumer confidence declined for the two past months, as workers voiced concerns about potential job losses. Credit card spending fell by $3.3 billion, a decline of 5.4 percent. The drop follows a nine percent increase in July.
"I think consumers were spooked by lackluster job creation and frightened by skyrocketing energy prices," Richard Yamarone, economist at Argus Research Corp., told the Associated Press.