Consumer Credit Growth Accelerated in May

Consumer credit increased at a seasonally adjusted annual rate of 7.6 percent in May, up from a 3.2 percent rate in April. This was the fastest pace in six months. Total outstanding credit increased $24.5 billion during the month (compared with $10.3 billion in April) to $3.90 trillion.

Revolving credit, largely a reflection of credit card debt, increased at an annual rate of 11.4 percent to $1.04 trillion, following a 1.3 percent increase in April. Non-revolving credit rose at a 6.2 percent annual rate, or $14.8 billion. Total non-revolving credit is now $2.86 trillion.

Federal government holdings of student loans continue to be the largest portion of non-revolving credit, comprising approximately 41.6 percent of outstanding credit. Depository institutions and finance companies are secondary and tertiary holders, with 25.0 percent and 17.7 percent, respectively, of outstanding non-revolving credit.

Read the Fed release.