Monday, September 9, 2013

Consumer Credit Grew by $10.4 billion in July

Consumer credit grew by $10.4 billion in July, a slower pace from June’s $11.9 billion. July’s growth is slightly below the 6-month average of $11.9 billion. The slower pace of growth in consumer credit was caused by slowing revolving credit growth.

Revolving credit shrank by $1.8 billion in July. It’s the second consecutive month of declines. Credit card usage is on the decline as customers shy away from higher interest revolving credit debt. Moreover, consumers are still cautious, signs the economy is still recovering.

Non-revolving balances continued to drive growth in July, rising 12.3 billion. Increased auto demand and education spending contributed to the bulk of non-revolving credit growth. Non-revolving balances are well above their pre-recession peak. Non-revolving credit growth from year ago levels continues to outpace the total balance growth, rising 7.7% in July.

Read the Federal Reserve release.

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