Consumer Credit Grew in March; Sixth Consecutive Monthly Increase

The Federal Reserve reported that consumer credit grew at annual rate of 3% in March to $2.425 trillion. Both nonrevolving and revolving credit grew at a similar rate in March. March was the sixth consecutive monthly increase in total consumer credit.

Revolving credit increased in March for the second time in four months (the last increase was in December 2010) suggesting that it has reached an inflection point. In 29 of the last 31 months, outstanding revolving credit has declined.

In March, revolving credit expanded by 2.9% (annualized rate) to $796.1 billion; but is still 18.23 percent below its August 2008 peak.

Nonrevolving credit grew at an annual rate of 3% in March. This was the eighth consecutive monthly increase in nonrevolving consumer debt.

Read the G. 19 Report.