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.

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Tim Nicholson

Tim Nicholson is an economic research associate at ABA.