AmiSight 4/17: Consumer Credit Contracts as Economic Anxiety Grows
- Ami Kassar
- Apr 17
- 1 min read
With all the tariff talk, consumer borrowing unexpectedly contracted in February – the first decline in three months – as Americans became more cautious about spending. Total credit dropped by nearly $810 million, and more Americans are tapping intro their retirement savings in so-called “hardship withdrawals.”
LinkedIn members weighed in on the topic:
Dr. Kruti Lehenbauer, a data scientist and economist, warns of panic buying on credit in anticipation of tariffs that might not even be enforced. She says: “The right question to ask if you are tempted to make a big purchase using your credit, whether it is for your personal use or something to invest for business is: ‘Do We Really NEED This Now?’”
Thomas J. Thompson, chief economist at Havas Edge, believes the shift is not only financial, but also psychological. He says: “When consumers start avoiding credit, they’re not just tightening budgets – they’re signaling doubt about the future. Confidence is fragile. Spending slows.”
Chris Thompson, editor at IRL Media NEWS, cautions investors who are tempted to sell during uncertain times. He says: “Panic selling can and will result in losses over the long-term, and will prevent participation in the eventual market recovery, which has historically always followed downturns.”
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