Thursday, August 7, 2014

Consumer Credit Advanced at Slower Pace in June

Consumer credit increased by $17.3 billion in June. However, the growth is the slowest seen in the last four months. Both revolving and non-revolving credit improved in June, albeit a slower pace from the month prior. Consumer credit grew at an annual pace of 6.5%, a decline in the pace from the month prior.

Revolving credit grew $0.9 billion, the slowest pace in five months and well below the prior three month average of $3.8 billion. Households are still tepid taking on higher debt levels.

Non-revolving balances grew $16.3 billion, strong growth considering that balances last month grew at the fastest pace in over a year. 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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