Total Credit Outstanding Declines as Interest Rates Climb


By David Logan on October 10, 2023 • According to the Federal Reserve’s latest G.19 Consumer Credit report, total consumer credit outstanding totaled $4.97 trillion (seasonally adjusted annual rate) in August, a decrease of $15.6 billion over the month but $188.8 billion—or 3.9%–higher than August 2022. The monthly decline resulted from a 0.8% drop in nonrevolving credit outstanding that was partially offset by a 1.2% increase in revolving credit. The level of revolving debt—primarily credit card debt—rose $14.7 billion over the month and $122.9 billion over the year (SAAR). Revolving debt outstanding has increased two consecutive months by a total of $24.3 billion (SAAR)—or 1.9%. Revolving and nonrevolving debt accounted for 25.9% and 74.1% of total consumer debt, respectively.  Since reaching a 32-year low in April 2021, revolving consumer credit outstanding as a share of the total has increased to a level not seen since July 2019. Credit card interest rates have climbed 61 basis points since May, reaching a record-high of 22.77% in August.  The average credit card interest rate has increased 434 basis points–or 23.6%–over the past 12 months. Interest rates for 60-month auto loans issued by commercial banks edged up seven basis points—from 7.81% to 7.88%–in August. Auto loan rates have surged 336 basis points, or 74.3%, since early 2022. Related ‹ Residential Building Wage Growth SlowingTags: credit card debt, household balance sheets, interest rates, nonrevolving credit, nonrevolving debt, revolving credit, revolving debt

Total Credit Outstanding Declines as Interest Rates Climb2023-10-10T14:17:36-05:00

Revolving Credit Growth Reaccelerates in July


By David Logan on September 12, 2023 • Consumer credit outstanding growth slowed to 2.5% in July, down from 3.4% in July (SAAR) according to the Federal Reserve’s latest G.19 Consumer Credit report. Revolving credit growth reaccelerated to 9.2% in July, potentially reflecting strong consumer sentiment and job security in a tight—albeit cooling—labor market. In contrast, nonrevolving consumer debt outstanding inched up just 0.2% over the month. Total revolving consumer credit has surged 10.8% over the past 12 months, more than offsetting slow growth in nonrevolving credit outstanding. Total consumer credit outstanding stands at $5.0 trillion (break-adjusted[1] and seasonally adjusted), with $1.3 trillion in revolving debt and $3.7 trillion in non-revolving debt. Seasonally adjusted revolving and nonrevolving debt accounted for 25.5% and 74.5% of total consumer debt, respectively. Revolving consumer credit outstanding as a share of the total increased 0.2 percentage point over the quarter and is 0.5 percentage point higher than it was one year ago.  [1] The results of the 2020 Census and Survey of Finance Companies–delayed by the pandemic–were incorporated in the latest Consumer Credit (G.19) statistical release, resulting in large revisions dating back to June 2021. Rather than retain the large spike in credit that now appears in the raw data, we have used the “break-adjusted” historical time series developed by Moody’s Analytics and will continue to do so moving forward. Click here for more information. Related ‹ Household Real Estate Value Jumps in the Second QuarterTags: consumer credit, credit card debt, employment, Federal Reserve, g.19, nonrevolving debt, revolving debt

Revolving Credit Growth Reaccelerates in July2023-09-12T15:16:12-05:00

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