Overview: The ISM services index fell 1.6 points to 53.8 in June.  Consumer credit fell by $9.1 billion in May.  Initial jobless claims fell by 21,000 to a level of 454,000 for the week ended 7/3.

The ISM services index fell 1.6 points to 53.8 in June.

Consumer credit fell by a greater-than-expected $9.1 billion to $2.415 trillion in May as both revolving and non-revolving credit declined (see chart below). The previously reported increase of $1.0 billion for April was revised downwards to a decline of $14.9 billion.  Credit has fallen in 15 of the last 16 months. Since its peak in July of 2008, consumer credit has declined by a record $167 billion (see chart below). The decline in credit is unprecedented; the previous record decline of $16 billion between 1990 and 1992 was one-tenth that of the current decline. 

The stock market recovered in part from its recent downturn with its best week of the year; both the Dow and Nasdaq rose 5%.

Initial jobless claims fell by 21,000 to 454,000 for the week ended July 3rd.