Last Update: 09-Sep-19 15:31 ET
- Consumer credit increased by $23.3 bln in July (Briefing.com consensus $18.2 bln) after increasing a downwardly revised $13.8 bln (from $14.6 bln) in June. That is the largest expansion since July 2018.
- Nonrevolving credit increased by $13.3 bln in July to $3.042 trln. Revolving credit increased by $10.0 bln in July to $1.081 trln.
- Consumer credit increased at a seasonally adjusted annual rate of 6.75%, with revolving credit increasing at an annual rate of 11.25% and nonrevolving credit increasing at an annual rate of 5.25%.
- The key takeaway from the report is the recognition that revolving credit expanded at its fastest pace since November 2017. That could mean one of two things: (1) consumers are using revolving credit more because they lack the cash to cover spending on basic needs or (2) consumers are using revolving credit more because they feel confident about repayment capabilities due to feelings of job security. Only future economic data will tell the real tale, but in the context of a U.S. growth outlook, the expansion in consumer credit in July is apt to be taken at face value as an an encouraging sign.