[1/2]Individuals pay for his or her purchases with self-checkout at a grocery store in Manhattan, New York Metropolis, U.S., March 28, 2022. REUTERS/Andrew Kelly/File Photograph Acquire Licensing Rights
Aug 18 (Reuters) – Financial institution credit score at U.S. business banks shrank within the newest week as business banks pulled again on lending to companies, knowledge revealed by the Federal Reserve confirmed on Friday.
Total financial institution credit score fell to $17.23 trillion within the week ending Aug. 9, down from $17.25 trillion every week earlier and $17.32 trillion a yr earlier, its second straight year-over-year drop.
Loans and leases fell to $12.13 trillion, from $12.15 trillion the week prior; business and industrial loans slipped to $2.74 trillion, from $2.75 trillion within the week ending Aug. 2. From a yr earlier, business and industrial (C&I) mortgage development slowed sharply to lower than 1%.
The developments mirror diminished demand from debtors amid the Fed's fast interest-rate hikes, in addition to tightening credit score requirements and the fallout from the U.S. regional financial institution failures this yr.
Reporting by Ann Saphir; enhancing by Jonathan Oatis and Josie Kao
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