Partly reflecting a jump in non-revolving credit, the Federal Reserve released a report on Thursday showing that USA consumer credit rose by more than expected in the month of July.
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The Federal Reserve on Thursday released its preliminary report on consumer credit for the month of July 2016.
Economists had expected consumer credit to rise by $15.6 billion compared to the $12.3 billion increase originally reported for the previous month.
USA consumer borrowing picked up in July bolstering expectations that consumer spending will remain a key factor in economic growth this year. On a seasonally adjusted basis, consumer credit rose 5.8% in the month, up from 4.8% growth posted in June.
In keeping with recent trends, nonrevolving credit outstanding, including student and auto loans, drove borrowing in July. Employers have added 204,000 jobs a month over the past year -though they added just 151,000 in August – and the unemployment rate is a healthy 4.9 percent.
Firm credit growth will help sustain near-term consumer spending growth, but longer-term sustainability issues surrounding student and auto loans will continue.
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WASHINGTON (AP) – American consumers increased their borrowing in July, though the category that includes credit cards grew at the slowest pace since February.
