ENCINO, CA-The 6.3% decline in consumer credit since July 2008will remain a drag on economic growth and job creation through therest of 2010, according to a new report from Marcus &Millichap. The report by Hessam Nadji, managing director ofresearch services for Marcus & Millichap, points out thatalthough consumption and retail sales have made significant headwaytoward recovery this year, the tighter consumer credit poses aheadwind for the economy.

"Top-tier borrowers retain access to credit, but theselower-risk consumers continue to impose austerity measures as theyde-leverage in the wake of the recession," the report says. "At thesame time, less creditworthy borrowers have been substantially cutoff from credit due to high levels of lender risk aversion." Evenafter credit becomes more readily available, Nadji's report pointsout, "Consumption will likely continue to lag until employment andincome growth improve sharply, an event not likely to occur untilmid-2011."