×
Newsmax TV & Webwww.newsmax.comFREE - In Google Play
VIEW
×
Newsmax TV & Webwww.newsmax.comFREE - On the App Store
VIEW
Tags: consumer | credit | spending | economy

Consumer Credit Surges $20.1 Billion, Fastest Pace in 3 Months

Hands holding credit card, online shopping concept
(Caimacanul/Dreamstime)

Friday, 05 October 2018 04:11 PM

U.S. consumer debt rose more than estimated in August, boosted by gains in both revolving and non-revolving credit, Federal Reserve figures showed Friday.

Highlights of Consumer Credit (August)

  • Total credit increased $20.1b, the most since May (est. up $15b) after a revised $16.6b in the prior month, the Fed data showed.
  • Revolving credit outstanding climbed $4.8b m/m, after a $1.4b gain
  • Non-revolving debt outstanding jumped $15.2b m/m after a $15.2b rise

Key Takeaways

Non-revolving debt, which includes loans for education and automobiles, posted the best back-to-back monthly gains since late last year. The increase in revolving debt, which includes credit cards, was the most since May, a sign consumers continue to spend more freely.

Steady hiring and tax cuts have helped households improve their finances, though wage growth has remained moderate throughout the economic expansion.

The Fed’s consumer credit report doesn’t track debt secured by real estate, such as home equity lines of credit and home mortgages.

Other Details

  • Non-revolving lending by the federal government, which is mainly for student loans, increased by $20.2 billion before seasonal adjustment
  • Credit rose at a seasonally adjusted annual rate of 6.2 percent, after 5.1 percent in the prior month

© Copyright 2022 Bloomberg News. All rights reserved.


StreetTalk
U.S. consumer debt rose more than estimated in August, boosted by gains in both revolving and non-revolving credit, Federal Reserve figures showed Friday.
consumer, credit, spending, economy
196
2018-11-05
Friday, 05 October 2018 04:11 PM
Newsmax Media, Inc.

Sign up for Newsmax’s Daily Newsletter

Receive breaking news and original analysis - sent right to your inbox.

(Optional for Local News)
Privacy: We never share your email address.
Join the Newsmax Community
Read and Post Comments
Please review Community Guidelines before posting a comment.
 
Get Newsmax Text Alerts
TOP

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved
NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved