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Economy in Brief

U.S. Consumer Credit Usage Eases
by Tom Moeller  August 7, 2019

Individuals pared back their borrowing needs in June, but it remains strong. Consumer credit outstanding increased $14.58 billion (5.1% y/y) after rising $17.81 billion in May, revised from $17.10 billion. It was the smallest increase in three months. A $16.5 billion gain had been expected by the Action Economics Forecast Survey.

Nonrevolving credit usage grew $14.68 billion (5.6% y/y) during June, the strongest increase in six months. Borrowing from the federal government, which issues over 40% of nonrevolving credit, rose 7.3% y/y. Depository institutions lending (25% of credit) gained an accelerated 6.1% y/y. Meanwhile, finance company balances edged 0.7% higher y/y and credit union loans strengthened 8.7% y/y. Each of these sectors provide roughly 15% of nonrevolving credit.

Revolving consumer credit balances eased $0.08 billion (+3.9% y/y) in June following two months of strong increase. Credit provided by depository institutions, which makes up 90% of revolving balances, grew 4.9% y/y. Borrowing from credit unions (6% of the issuance) increased 8.4% y/y.

These Federal Reserve Board figures are break-adjusted and calculated by Haver Analytics. The breaks in the series in 2005, 2010 and 2015 are the result of the incorporation of the Census and Survey of Finance Companies, as well as changes in the seasonal adjustment methodology.

The consumer credit data are available in Haver's USECON database. The Action Economics figures are contained in the AS1REPNA database.

Consumer Credit Outstanding (M/M Chg, SA) Jun May Apr Jun y/y 2018 2017 2016
Total $14.58 bil. $17.81 bil. $17.49 bil. 5.1% 4.7% 5.0% 6.8%
   Nonrevolving 14.68 10.32 10.81 5.6 5.3 4.8 6.9
   Revolving -0.08 7.48 6.68 3.9 3.1 5.6 6.8
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