Consumer Credit Shrinks in August

Consumer credit decreased at a seasonally adjusted annual rate of 2.0% in August according to the Federal Reserve. Revolving credit decreased at a rate of 11.3% to $985.3 billion, while nonrevolving credit increased 0.8% to $3.16 trillion. Total outstanding credit increased to $4.14 trillion.

Federal government holdings of student loans continue to be the largest portion of non-revolving credit, comprising approximately 43.2% of outstanding credit. Depository institutions and finance companies are secondary and tertiary holders, with 25.2% and 16.6%, respectively, of outstanding non-revolving credit.

Read the Fed release.