Consumer Credit Growth Slowed in August

Consumer credit increased at a seasonally adjusted annual rate of 4.2% in August, down from a downwardly revised 5.7% rate in July. Total outstanding credit increased $13.1 billion during the month (compared with $17.7 billion in July) to $3.77 trillion.

Revolving credit, largely a reflection of credit card debt, grew at an annual rate of 7.0% to $1.0 trillion, compared to a 2.5% increase in July. Non-revolving credit rose at a 3.2% annual rate, or $7.3 billion, compared to July’s rate of $15.6 billion. Total non-revolving credit is now $2.77 trillion.

Federal government holdings of student loans continue to be the largest portion of non-revolving credit, comprising approximately 40.4% of outstanding credit. Depository institutions and finance companies are secondary and tertiary holders, with 25.2% and 18.5%, respectively, of outstanding non-revolving credit.

Read the Fed release.