Consumer Credit Grew 8.5% in August

Consumer credit increased at a seasonally adjusted annual rate of 8.5% in August, up from a 5.9% rate in July. Total outstanding credit rose $25.9 billion during the month (compared with $14.5 billion in July) to $3.69 trillion.

Revolving credit rose at an annual rate of 7.0% to $974.6 billion, compared to a 3.5% increase in July. Non-revolving credit rose at a 9.0% annual rate, or $20.2 billion, compared to July’s rate of 6.7%. Total outstanding non-revolving credit is now $2.71 trillion.

Federal government holdings of student loans continue to be the largest portion of non-revolving credit, comprising approximately 38% of outstanding credit. Depository institutions and finance companies are the secondary and tertiary holders, with 25% and 23%, respectively, of outstanding non-revolving credit.

Read the Fed release.