Consumer Credit Growth Slowed in February

Consumer credit increased at a seasonally adjusted annual rate of 3.3% in February, down from a 4.9% rate in January. Total outstanding credit increased $10.6 billion during the month (compared with $15.6 billion in January) to $3.87 trillion.

Revolving credit, largely a reflection of credit card debt, grew at an annual rate of 0.2% to $1.03 trillion, compared to a 1.5% increase in January. Non-revolving credit rose at a 4.4% annual rate, or $10.5 billion, compared to January’s rate of $14.1 billion. Total non-revolving credit is now $2.84 trillion.

Federal government holdings of student loans continue to be the largest portion of non-revolving credit, comprising approximately 41.4% of outstanding credit. Depository institutions and finance companies are secondary and tertiary holders, with 24.9% 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.