Monday, July 8, 2013

Consumer Credit Grew by $19.6 billion in May

Consumer credit rose by $19.6 billion over May, the fastest pace in a year. Unlike in previous months, the jump in consumer credit was also driven by an increase in revolving credit, in addition to non-revolving credit gains. In previous months consumer credit was driven by non-revolving student loans.

Revolving credit, consisting primarily of credit card balances, grew by $6.6 billion, a 9.7% increase from the previous month. The increase was a large jump from the previous month and the largest gain in a year. Revolving credit continues a volatile trend, and has grown by $10.7 billion in the past year. The gains in revolving credit attributed to the uptick in credit card use.

Non-revolving balances grew for the 21st consecutive month, rising $13.0 billion in May, and increasing 8.2% from the previous month. Student loans were surprisingly not the driver of non-revolving credit.

Read the Federal Reserve release.

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