Consumer Credit Growth Accelerated in July

Consumer credit increased at a seasonally adjusted annual rate of 5.9% in July, up from a downwardly revised 3.8% rate in June. Total outstanding credit increased $18.5 billion during the month (compared with $11.9 billion in June) to $3.75 trillion.

Revolving credit, largely a reflection of credit card debt, grew at an annual rate of 3.2% to $1.0 trillion, compared to a 5.8% increase in June. Non-revolving credit rose at a 6.9% annual rate, or $15.8 billion, compared to June’s rate of $7.1 billion. Total non-revolving credit is now $2.76 trillion.

Federal government holdings of student loans continue to be the largest portion of non-revolving credit, comprising approximately 40.0% of outstanding credit. Depository institutions and finance companies are secondary and tertiary holders, with 25.2% and 18.7%, respectively, of outstanding non-revolving credit.

Read the Fed release.