Increase in Consumers' Revolving Credit Hits 12-Month High

Total consumer credit outstanding increased $19.6 billion (0.7%) to $2.84 trillion from April to May, according to a Federal Reserve report (link opens a PDF) released today.

After bumping up 0.4% in April, analysts had expected a slight $13 billion increase for May.

Revolving credit (no fixed number of payments, e.g., credit cards) packed the most punch, increasing a seasonally adjusted 9.3% for May. After March's 1.1% dip and April's 1.1% recovery, this month's increase is the largest in 12 months, according to The Wall Street Journal, and puts revolving credit on a sharp upward trend.

Non-revolving credit (fixed installments, e.g., car payments) also recorded a significant jump, up a seasonally adjusted 7.9%.

Non-revolving credit has generally improved at a faster rate than revolving credit, up 8.5% in 2012 compared to revolving credit's 0.4% bump. More recently, revolving credit clocked in at a seasonally adjusted 1.5% gain for Q1 2013, while non-revolving credit recorded a 7.8% increase.

Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2526604, ~/Articles/ArticleHandler.aspx, 9/28/2016 12:08:07 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 2 hours ago Sponsored by:
DOW 18,228.30 133.47 0.74%
S&P 500 2,159.93 13.83 0.64%
NASD 5,305.71 48.22 0.92%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes