Consumer Credit Growth Surges in October

Consumer credit increased at a seasonally adjusted annual rate of 6.5% in October, up from a 6.1% rate in September. Total outstanding credit increased $20.5 billion during the month (compared with $19.2 billion in September) to $3.80 trillion.

Revolving credit, largely a reflection of credit card debt, grew at an annual rate of 9.9% to $1.01 trillion, compared to a 6.7% increase in September. Non-revolving credit rose at a 5.3% annual rate, or $12.2 billion, compared to September’s rate of $13.2 billion. Total non-revolving credit is now $2.79 trillion.

Federal government holdings of student loans continue to be the largest portion of non-revolving credit, comprising approximately 40.7% of outstanding credit. Depository institutions and finance companies are secondary and tertiary holders, with 25.1% and 18.3%, respectively, of outstanding non-revolving credit.

Read the Fed release.