Consumer credit increases 4.5% in July, credit unions see rise
U.S. consumer credit increased a seasonally adjusted 4.5% or $10.4 billion in July, for a total of $2.852 trillion borrowed during the month, according to the Federal Reserve's Consumer Credit report. Money borrowed from credit unions totaled $254.7 billion.
The Fed report was released September 9.
Underlying trends lifting consumer credit stayed the same--demand for auto and student loans continue to push up credit balances. However, households remain reluctant to add to their credit card debt, said Moody's Economy.com (Sept. 9).
At credit unions, borrowing climbed by $3.1 billion from the $251.6 billion in June.
Overall U.S. revolving credit, which includes credit card spending, declined at an annual rate of 2.5%--or $1.8 billion--in July to $849.8 billion from $851.6 billion in June.
Credit unions' revolving credit rose slightly to $40.6 billion from $40.1 billion in June.
Nonrevolving credit--such as loans for cars, mobile homes and college tuition--rose at an annual rate of 7.5%--or $12.3 billion--to about $1.993 trillion in July from roughly $1.982 trillion in June.
Credit unions issued $214.1 billion in nonrevolving loans in July, up from $211.5 billion in June.