Consumer Credit Growth Continued in January

Consumer credit increased at a seasonally adjusted annual rate of 4.3% in January, down from a 6.0% rate in December. Total outstanding credit increased $13.9 billion during the month (compared with $19.2 billion in December) to $3.86 trillion.

Revolving credit, largely a reflection of credit card debt, grew at an annual rate of 0.8% to $1.03 trillion, compared to a 7.2% increase in December. Non-revolving credit rose at a 5.6% annual rate, or $13.2 billion, compared to December’s rate of $13.1 billion. Total non-revolving credit is now $2.83 trillion.

Federal government holdings of student loans continue to be the largest portion of non-revolving credit, comprising approximately 41.2% of outstanding credit. Depository institutions and finance companies are secondary and tertiary holders, with 25.0% and 17.9%, respectively, of outstanding non-revolving credit.

Read the Fed release.

About Stephen Newton

Stephen Newton is an economic research associate at ABA.