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US Consumer Credit Posts Sharp Increase

ByMarc Chandler
Published 07/09/2013, 04:50 AM
Updated 07/09/2023, 06:31 AM

The US reported that consumer credit was extended in May by the most in a year. The $19.6 bln increase was half again as much as the consensus and follows a $10.9 bln increase in April. The May increase was 8.4% at an annualized rate up from 4.6% in April. Over the past year US consumer credit has been mostly growing at a 5-6% clip.

The Great Graphic from Sober Look, shows how non-revolving credit, which includes auto loans, student loans and personal loans has been much stronger than revolving credit (credit cards). This remained true in May. Non-revolving credit rose $13.0 bln, or 7.9% following a 6.2% increase in April.
US Consumer
Credit card debt increased by $6.6 bln in May, a 9.3% annualized pace. This is the fast in a year and follows a 1.1% increase in April. One month a trend does not make, but the increase is significant in the context over credit card borrowings during the recovery.

The report also is another piece of the accumulating evidence that suggests the de-leveraging of American households has ended, while still at historically high levels of debt.

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