Consumer Credit Grew 6.7% (SAAR) in July

Consumer credit increased in July at a seasonally adjusted annual rate of 6.7 percent, rising to $3.45 trillion. Revolving credit rose at an annual rate of 5.7 percent to $915 billion, and non-revolving credit increased at an annual rate of 7.0 percent to $2.54 trillion.

Total outstanding consumer credit increased by $19.1 billion, down from last month’s $27.0 billion increase. Total outstanding non-revolving credit increased $14.8 billion, down from a $19.5 billion increase in June. Outstanding revolving credit increased by $4.3 billion – less than June’s $7.5 billion increase.

Federal Government holdings of student loans continue to be the largest portion of non-revolving credit, comprising 36 percent of outstanding credit. Finance companies and depository institutions are the secondary holders of non-revolving credit, each holding approximately 25 percent. Depository institutions continue to be the primary holder of revolving credit, holding 82 percent.

Read the Federal Reserve release.


About Author

Tim Nicholson

Tim Nicholson is an economic research associate at ABA.