US consumer borrowing is slowing: US consumer credit rose by just +363 million in August, the slowest pace in 6 months and far below expectations of a +14.0 billion increase. The modest gain follows a sharp +18.1 billion rise in July. The slowdown was driven by a -6.0 billion drop in revolving credit, which includes credit cards, the second-largest decline in 4.5 years. Non-revolving credit, which includes auto and student loans, rose +6.3 billion. Meanwhile, the average interest rate on credit cards rose to 22.8%, the highest this year and near the highest on record. Americans are pulling back on spending.(The Kobeissi Letter)