Consumer Credit Growth Slows in Q1 2023

2023-05-08T12:16:26-05:00

By David Logan on May 8, 2023 • According to the Federal Reserve’s latest G.19 Consumer Credit report, the growth of total consumer credit outstanding slowed from 7.4% to 5.4% (seasonally adjusted annual rate) in the first quarter of 2023. Nonrevolving (excluding real estate debt) and revolving debt grew 3.1% and 12.3%, respectively, over the quarter. On an unadjusted basis, the level of nonevolving credit outstanding at the end of Q1 2023 was $3.6 trillion while the level of revolving debt—primarily credit card debt—was $1.2 trillion. Revolving and nonrevolving debt accounted for 24.6% and 75.4% of total consumer debt, respectively.  Revolving consumer credit outstanding as a share of the total decreased 0.6 percentage point over the quarter but remains 1.6 ppt above the Q1 2023 level. With every quarterly G.19 report, the Federal Reserve releases a memo item covering student and motor vehicle loans’ outstanding. The most recent release shows that the balance of student loans was $1.8 trillion (not seasonally adjusted) at the end of the first quarter while the amount of auto loan debt outstanding stood at $1.4 trillion (NSA). Together, these loans made up 88.8% of nonrevolving credit balances (NSA)—the smallest share since Q2 2011 and 2.1 ppts lower than the share in Q1 2022. Related ‹ Solid Job Growth in AprilTags: auto loans, consumer credit, consumer debt, finance, mortgage finance, non-revolving debt, nonrevolving debt, revolving debt, student loan debt, student loans

Consumer Credit Growth Slows in Q1 20232023-05-08T12:16:26-05:00

Nonrevolving Debt Increases as Auto Loan Rates Surge

2023-04-11T10:30:20-05:00

By David Logan on April 11, 2023 • According to the Federal Reserve’s latest G.19 Consumer Credit report, total consumer credit outstanding totaled $4.78 trillion in February, a decrease of $12 billion over the month but $300 billion higher than February 2022. Nonevolving credit outstanding increased $1.0 billion while the level of revolving debt—primarily credit card debt—fell $13.0 billion over the month. Revolving debt outstanding has declined two consecutive quarters for the first time since late 2020. The balance of consumer credit outstanding grew 3.8% in February 2023 (seasonal adjusted annual rate) after climbing 4.9% (SAAR) in January.  Revolving debt——increased at a 5.0% rate while nonrevolving debt (excluding real estate) grew 3.4% (SAAR). Revolving and nonrevolving debt accounted for 24.5% and 75.5% of total consumer debt, respectively.  Between February 2021 and February 2022, revolving consumer credit outstanding as a share of the total increased 0.8 percentage point. Interest rates for 60-month auto loans issued by commercial banks climbed 93 basis points—from 6.55% to 7.48%–in Q1 2023, following a 105 basis point increase in Q4 2022. Over the last year, auto loan rates have surged 65.5%. Related ‹ Residential Building Wage Growth SlowingTags: auto loans, consumer credit, consumer lending, interest rates, lending, non-revolving debt, nonrevolving debt, revolving debt

Nonrevolving Debt Increases as Auto Loan Rates Surge2023-04-11T10:30:20-05:00
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