Consumer credit continued to grow in June, increasing by $6.5 billion. Consumer credit has now increased for 21 of the past 22 months. Consumer credit grew at a 3% annualized rate, well below the year-to-date average of 5.6%.
June’s growth in consumer credit was driven entirely by a $10.2 billion gain in non-revolving credit. Non-revolving credit has increased for 10 consecutive months. The increase in non-revolving credit is driven primarily by growth in student loans which accounted for over 90% of the gain according to non-seasonally adjusted data.
Revolving credit gave back some of its large gains from May, falling $3.7 billion in June. Revolving credit has recovered some, but still remains 15% below its prerecession peak.
Read the Federal Reserve release.