Consumer credit rose by $14.6 billion in the final month of 2012, driven entirely by gains in non-revolving credit. Consumer credit has now grown for five consecutive months, gaining over 10 billion each month. Gains in recent months have been driven almost entirely by the non-revolving segment. Growth from a year ago slipped slightly, falling to 5.7% in December from 5.8% the previous month.
Nonrevolving balances accounted for the entirety of December’s gain, more than offsetting a decline in revolving balances. Revolving credit fell by $3.6 billion in December, negating most of the gains seen in the previous two months. Revolving balances have been volatile in 2012, rising in just half of the months.
Nonrevolving credit grew by $18.2 billion in December, its fifth consecutive gain and the largest gain of the five. Nonrevolving credit has now grown 8.8% in the past year. On a non-seasonally adjusted basis, nonrevolving credit saw much smaller gains. Student loans continue to make heavy contributions to credit growth, accounting for about half of the non-seasonally adjusted balance.
Read the Federal Reserve release.