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

Hugo Dante is an economist in Washington, D.C. He was previously an economic research specialist at ABA. In addition to the ABA Banking Journal, his writing has appeared in The Hill, The National Interest and Townhall. Views expressed here are his own.