Consumer Credit Grew at 5.6 Percent (SAAR) in August

Consumer credit increased in August at a seasonally adjusted annual rate of 5.6 percent, rising to $3.47 trillion. Revolving credit rose at an annual rate of 5.3 percent to $918 billion, and non-revolving credit increased at an annual rate of 5.7 percent to $2.55 trillion.

Total outstanding consumer credit increased by $16.0 billion, down from last month’s $18.9 billion increase. Total outstanding non-revolving credit increased $12.0 billion, down from a $14.7 billion increase in July. Outstanding revolving credit increased by $4.0 billion, slightly less than the $4.2 billion increase last month.

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.