Wednesday, May 7, 2014

Consumer Credit Grew $17.5 Billion in March

Consumer credit saw its largest increase in a year in March, rising $17.5 billion. March’s strong gains continue to be driven by demand for student loans and auto lending captured in non-revolving credit. Revolving credit also contributed to the gain, reversing a decline the month prior. The annualized credit growth improved to 6.7%, from 5.0% in February.

Revolving credit grew $1.1 billion. It’s the largest gain this year. As the weather thaws, consumers are increasing their appetite to take on additional credit.

Non-revolving credit jumped by $16.4 billion, of which only $2.6 billion was federal student loans. The majority of non-revolving credit was auto loans.

Read the Federal Reserve release.

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