Friday, June 7, 2013

Consumer Credit Grew $11.1 Billion in April

Consumer credit rose by $11.1 billion over April, a faster pace than the previous month but below rates seen so far this year. Following recent trends, consumer credit growth continues to be driven by student loans, while revolving credit growth remains sluggish.

Revolving credit, consisting primarily of credit card balances, grew by $700 million, partially offsetting a $900 million loss the previous month. Revolving credit has now grown $1 billion since the beginning of the year.

Non-revolving balances grew for the 20th consecutive month, rising $10.4 billion in April. Although strong, April’s growth is slower than the $12.5 billion growth seen over the first quarter. Student and auto loans make up the majority of the non-revolving sector.

Non-revolving credit has accounted for the vast majority of growth lately. Of the $156.7 billion in credit growth over the past 12 months, 94% is due to non-revolving balances.

Read the Federal Reserve Release.

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