Consumer Credit Growth Soared in October

Consumer credit increased at a seasonally adjusted annual rate of 7.7 percent in October, up from an upwardly revised 3.5 percent rate in September. Total outstanding credit increased $25.4 billion during the month (compared with $11.6 billion in September) to $3.96 trillion. This was the fifth largest monthly increase in total credit in the post-crisis period.

Revolving credit, largely a reflection of credit card debt, increased at an annual rate of 10.7 percent to $1.04 trillion, following a 0.4 percent decrease in September. Non-revolving credit rose at a 6.7 percent annual rate, or $16.2 billion. Total non-revolving credit is now $2.93 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 24.9 percent and 17.3 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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