Consumer Credit Growth Retreats in January

Consumer credit increased at a seasonally adjusted annual rate of 2.8% in January, down from a 4.7% rate in December. Total outstanding credit increased $8.8 billion during the month (compared with $14.8 billion in December) to $3.77 trillion.

Revolving credit fell at an annual rate of 4.6% to $995.1 billion, compared to a 4.3% increase in December. Non-revolving credit rose at a 5.5% annual rate, or $12.6 billion, compared to December’s rate of $11.2 billion. Total non-revolving credit is now $2.78 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 secondary and tertiary holders, with 25% and 22%, respectively, of outstanding non-revolving credit.

Read the Fed release.