Consumers Increase Borrowing on Everyday Items - Economy * US * News * Story

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Credit Crunch Puts Pinch on Savings: Malpass

By: CNBC.com | 07 Aug 2008 | 10:40 AM ET

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Today’s consumer credit report is expected to show that the economic slowdown caused consumers to borrow less readily in June, but David Malpass, president of Encima Global, disagreed.

People are simply shuffling around their credit card use, racking up more purchases on everyday items such as gas, and reducing additions to their savings and 401(k)s, he said.

"The big thing in '02, '03, '04, '05 was people were piling new money into financial assets," Malpass said. "Now they pull back on that and maintain a pretty even keel on consumption."