Tuesday, October 7, 2014

Consumer Credit Grew $13.5 Billion in August

Consumer credit increased $13.5 billion in August, the slowest pace in 9 months. Consumer credit gains continue to be driven by non-revolving credit, as revolving credit shrank. The annualized credit growth dropped to 5.0%, from 8.1% in July.

Revolving credit shrank $0.2 billion. It’s the first time revolving credit has declined since February.

Non-revolving credit grew by $13.7 billion, driven largely by a $19.8 billion increase in federal student loans, the largest federal student loan growth since January. Vehicle sales also contributed to non-revolving growth, as auto sales jumped to a 17.5 million annualized rate in August, the strongest pace since January 2006.

Read the Federal Reserve release.

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