Home | Growth | Credit growth slows in July as consumers show caution

Credit growth slows in July as consumers show caution

By
Font size: Decrease font Enlarge font
Credit growth slows in July as consumers show caution

For the second month in a row, growth in consumer credit slowed, indicating that consumers are still wary of taking on additional debt.

The Federal Reserve yesterday released July figures for consumer credit outstanding, which for the second month in a row showed slowing growth. 

July's figure of 4.4% growth in total debt outstanding follows June's rate of 5.1%, itself down significantly from May's figure of 6.8%.  (All numbers seasonally adjusted.)  Total debt outstanding increased $10.4 billion during July.

Apparent consumer caution is reflected in the decrease of $1.8 billion reported for revolving credit, which includes credit card debt, which represents a decline of 2.6% (annualized).  This follows a decrease of 5.2%  in June.

Nonrevolving debt, which includes automobile loans and all other loans not included in revolving credit, such as loans for mobile homes, education, boats, trailers, or vacations, increased $12.2 billion during the period, an annualized rate of 7.4%.

The full report can be found here.

Join PRESIDENT&CEO on LinkedIn

Subscribe to comments feed Comments (0 posted)

total: | displaying:

Post your comment

  • Bold
  • Italic
  • Underline
  • Quote

Please enter the code you see in the image:

Captcha