US consumer credit for July surges by around USD25.5B
Date
9/11/2024 9:21:22 AM
(MENAFN) On Monday, the Federal Reserve reported a notable increase in US consumer credit for July, which rose by approximately USD25.5 billion compared to the previous month, bringing the total to nearly USD5.1 trillion. This increase significantly exceeded market expectations, which had anticipated a rise of USD12.3 billion. The substantial jump in consumer credit highlights a stronger-than-expected demand for borrowing among consumers.
The data for June was revised downward, with the increase adjusted to USD5.2 billion from an earlier reported gain of USD8.93 billion. This revision indicates a smaller growth in consumer credit for the prior month than initially thought. The July figures reflect a more robust expansion, suggesting a dynamic shift in consumer borrowing patterns.
According to the Federal Reserve's statement, consumer credit in July expanded at a seasonally adjusted annual rate of 6.0 percent. This rate provides insight into the pace of growth in consumer credit relative to the overall economic environment. The breakdown of this growth shows that revolving credit, which includes credit card debt, increased at an annual rate of 9.4 percent. This indicates a significant rise in credit card usage and consumer borrowing on revolving accounts.
In contrast, nonrevolving credit, which encompasses loans for items such as cars and education, grew at a more modest annual rate of 4.8 percent. The differing rates of growth between revolving and nonrevolving credit highlight varied consumer borrowing behaviors and preferences. Overall, the substantial increase in consumer credit suggests heightened consumer confidence and spending, potentially influencing economic trends and policy considerations.
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