Consumer Credit Growth Accelerates in December

Consumer credit increased at a seasonally adjusted annual rate of 5 percent in the fourth quarter and a rate of 6.25 percent in December. Total outstanding credit increased $22 billion during the month to $4.197 trillion.

Revolving credit, largely a reflection of credit card debt, decreased at an annual rate of 14.0 percent to $1.1 trillion, following a 3.2 percent decrease in November. Non-revolving credit rose at a 3.7 percent annual rate, or $9.4 billion. Total non-revolving credit is now $3.1 trillion.

Federal government holdings of student loans continue to be the largest portion of non-revolving credit, comprising approximately 40 percent of outstanding credit.

Read the Fed release.


About Author