Consumer Credit Growth Picked Up in August

Consumer credit increased at a seasonally adjusted annual rate of 6.2 percent in August, up from a 5.1 percent rate in July. Total outstanding credit increased $20.1 billion during the month (compared with $16.6 billion in July) to $3.94 trillion.

Revolving credit, largely a reflection of credit card debt, increased at an annual rate of 5.6 percent to $1.04 trillion, following a 1.6 percent increase in July. Non-revolving credit rose at a 6.4 percent annual rate, or $15.3 billion. Total non-revolving credit is now $2.89 trillion.

Federal government holdings of student loans continue to be the largest portion of non-revolving credit, comprising approximately 41.8 percent of outstanding credit. Depository institutions and finance companies are secondary and tertiary holders, with 25.0 percent and 17.4 percent, respectively, of outstanding non-revolving credit.

Read the Fed release.

About Jack McCabe

Jack McCabe is a research associate in the Economic Policy and Research group at the ABA.
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