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Economy in Brief

U.S. Consumer Credit Posts Record Increase in June
by Tom Moeller  August 6, 2021

• Nonrevolving credit usage remains strong.

• Revolving credit growth accelerates.

Consumer credit outstanding surged $37.7 billion during June (4.2% y/y) following a $36.7 billion May increase, revised from $35.3 billon.  A $22.0 billion June rise had been expected in the Action Economics Forecast Survey. The $18.9 billion April rise was revised from $20.0 billion. The ratio of consumer credit outstanding-to-disposable personal income of 24.1% in June compared to 24.0% during all of last year and 25.9% during 2019.

Nonrevolving credit usage grew $19.8 billion (5.5% y/y) in June following a $27.6 billion May rise, revised from $26.1 billion. Federal government borrowing, which issues over 40% of nonrevolving credit, grew a steady 4.3% y/y. Depository institution loans (25% of credit) grew an accelerated 7.1% y/y, up from 2.7% last year. Finance company borrowing (17.0% of loans) rose 7.7% y/y, up from 3.6% in 2020 and 1.0% growth in 2019. Credit union loans (15.0% of the total) increased 4.9% y/y.

Revolving consumer credit balances jumped $17.9 (-0.2% y/y) after a $9.1 billion May rise, revised from $9.2 billion. Credit provided by depository institutions (90% of the total and mostly credit card debt) rose 0.2% y/y, up from an 11.0% y/y decline last year. Credit union borrowing eased 0.7% y/y and the value of finance company loans weakened 15.5% 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 2020 2019 2018
Total ($ bil) 37.7 36.7 18.9 4.2% -0.3% 4.6% 4.5%
   Nonrevolving 19.8 27.6 20.1 5.5 3.6 5.0 4.8
   Revolving 17.9 9.1 -1.1 -0.2 -11.1 3.6 3.7
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