Subprime auto loan default rates hit a record high, highlighting the weakness of the US economy.

According to data from Fitch Ratings, the proportion of subprime auto loan borrowers who are at least 60 days overdue in October rose to 6.65%, the highest level since records began in 1994. With inflation pressures continuing and student loan bills resuming, millions of car owners are struggling to afford their monthly payments. As the Federal Reserve considers future interest rate cuts, this is the latest sign of weakening in the US economy. With slowing economic growth and a soft job market, ordinary people may face more severe budget pressures. Affordability and cost of living were the most important issues for voters in last week's local elections, and consumer surveys also show that Americans are pessimistic about the economic situation. According to TransUnion data, the proportion of consumers in the highest risk credit category has risen to unprecedented levels since 2019. In the third quarter of this year, 14.4% of the consumers tracked by the agency were subprime borrowers, higher than the 13.9% in the same period last year.