June 27 (Reuters) - A study on loans for buying

automobiles in the United States has found that weaker consumer

budgets are negatively impacting loan payments for some

borrowers, credit reporting agency TransUnion ( TRU ) said on

Thursday.

WHY IT'S IMPORTANT

U.S. consumers are continuing to hold back on big-ticket

purchases and being careful with their spending amid

inflationary pressures and the Federal Reserve's monetary policy

path.

The TransUnion ( TRU ) study showed continued declines in auto-loan

applications since the pandemic.

Despite the recent recovery in supply chain shortages,

elevated inflation and higher interest rates that followed have

put consumers in a tight financial bind, according to the study.

BY THE NUMBERS

TransUnion ( TRU ) said first-quarter auto delinquencies that are 60

days or more past due date have risen to 1.33% from 1.19% a year

earlier.

WHAT'S NEXT

Many borrowers have been taking on additional monthly

payments to compensate for higher debt levels due to budget

constraints, and some are further holding off on new auto leases

and purchases, according to the study.

Increased pressures on consumer affordability and spending

will further drive a slowdown in an already sluggish auto

origination market, TransUnion ( TRU ) said.