Friday, June 6, 2014

Consumer Credit Jumped in April

Consumer credit jumped by $26.8 billion in April, the largest monthly gain since 2001. For the first time since the recovery, gains were driven by both revolving and non-revolving credit. The annualized credit growth improved to 10.2%, from 7.5% in March.

Revolving credit grew $8.8 billion, the largest monthly gain since November 2007. The warm weather rebound and growing economy mean that consumers are more willing and able to talk on larger debt levels. It is a positive sign for future economic growth.

Non-revolving balances grew to a faster pace too, reaching $18.0 billion in April. Non-revolving balances consist mostly of student and auto loans. Non-revolving balances have now increased consecutively since 2011 and are well above their pre-recession peak.

Read the Federal Reserve release.

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