Consumer credit in US increases USD.893B in June
(MENAFN) In June, US consumer credit increased by approximately USD8.93 billion compared to the previous month, bringing the total to nearly USD5.1 trillion, according to a report from the Federal Reserve released on Wednesday. This rise was notably lower than market expectations, which had anticipated an increase of USD9.8 billion. For context, consumer credit had risen by USD13.95 billion in May.
The Federal Reserve's statement revealed that consumer credit grew at a seasonally adjusted annual rate of 2.4 percent during the second quarter of the year. This growth rate was influenced by different segments of credit, with revolving credit, such as credit cards, increasing at an annual rate of 1.2 percent. In contrast, nonrevolving credit, which includes auto loans and student loans, grew at a faster annual rate of 2.9 percent.
In terms of monthly performance, the annual rate of increase for consumer credit in June was reported at 2.1 percent. This figure reflects the overall moderation in credit growth compared to the previous month and highlights the ongoing trends within consumer borrowing patterns.
Overall, while there was an increase in consumer credit, the lower-than-expected rise suggests a more cautious borrowing environment among consumers. The Federal Reserve's detailed breakdown of revolving versus nonrevolving credit offers insight into how different types of credit are contributing to the overall growth rate.
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