Consumer Credit Growth Continued in December

Consumer credit increased at a seasonally adjusted annual rate of 5.8% in December, down from a 9.8% rate in November. Total outstanding credit increased $18.4 billion during the month (compared with $31.0 billion in November) to $3.84 trillion.

Revolving credit, largely a reflection of credit card debt, grew at an annual rate of 6.0% to $1.03 trillion, compared to a 13.1% increase in November. Non-revolving credit rose at a 6.4% annual rate, or $13.4 billion, compared to November’s rate of $20.0 billion. Total non-revolving credit is now $2.81 trillion.

Federal government holdings of student loans continue to be the largest portion of non-revolving credit, comprising approximately 40.8% of outstanding credit. Depository institutions and finance companies are secondary and tertiary holders, with 25.2% and 18.2%, respectively, of outstanding non-revolving credit.

Read the Fed release.