Consumer Credit Use Rises in June, but Not for Retailers
ThinkstockConsumer credit rose by $13.8 billion in the month of June, but it is not exactly debt going on credit cards. The Federal Reserve showed that revolving credit, credit used on cards and the like was down by 3.8%. The…
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Consumer credit rose by $13.8 billion in the month of June, but it is not exactly debt going on credit cards. The Federal Reserve showed that revolving credit, credit used on cards and the like was down by 3.8%. The non-revolving credit debt (loans for mobile homes, education, boats, trailers, or vacations) rose by 10%.
Bloomberg was calling for consumer credit to increase by $15 billion. The lower than expected report issued today has to be tied to lower consumer use of credit cards because the gains elsewhere were so large. This may not be the best news in the world for the retailers, although June is considered a throwaway month for many retailers.
Total outstanding credit rose to $2,847.9 trillion. Revolving credit was $853.6 billion, while non-revolving credit was $1.9943 trillion.
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Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.
