Consumer Credit Growth Accelerated in May

Consumer credit increased at a seasonally adjusted annual rate of 5.8% in May, up from a revised 4.1% rate in April. Total outstanding credit increased $18.4 billion during the month (compared with $12.9 billion in April) to $3.84 trillion.

Revolving credit grew at an annual rate of 8.7% to $1.0 trillion, compared to a 1.4% increase in April. Non-revolving credit rose at a 4.7% annual rate, or $11.1 billion, compared to April’s rate of $11.7 billion. Total non-revolving credit is now $2.82 trillion.

Federal government holdings of student loans continue to be the largest portion of non-revolving credit, comprising approximately 38.7% of outstanding credit. Depository institutions and finance companies are secondary and tertiary holders, with 24.5% and 21.3%, respectively, of outstanding non-revolving credit.

Read the Fed release.