US Consumer Borrowing Rose $18 Billion in July

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The Federal Reserve on Thursday released its preliminary report on consumer credit for the month of July 2016. On a seasonally adjusted basis, consumer credit rose 5.8% in the month, up from 4.8% growth posted in June. The preliminary June increase of $12.3 billion was revised upward to $14.5 billion.

In dollar terms, consumer credit rose by $17.6 billion month over month. Analysts had been expecting an increase of $16 billion.

Total consumer debt rose to $3.623 trillion in February of which $934.9 billion is revolving (mostly credit card) debt and $2.688 trillion is non-revolving debt. Revolving debt rose by $4.4 billion and non-revolving debt rose by $13.2 billion. Revolving credit comprises primarily credit card balances and non-revolving credit includes motor vehicle loans, student loans, among others, and may be secured or unsecured. Mortgage debt is not included in the report.

The largest holders of consumer debt are depositary institutions which hold about $1.456 trillion in debt, including certain types of student loans. The federal government holds about $1.006 trillion in  total debt, all of which is non-revolving and includes certain kinds of student loans. Finance companies and credit unions are also large holders of non-revolving debt, with July totals of about $613.1 billion and $312.6 billion, respectively.

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