U.S. Consumer Credit Picks Up in June – Real Time Economics

Revolving credit, mostly credit cards, rose at a 7.4% annual rate in June, a jump from May when it rose at an annual rate of 2.1%.
GERALD HERBERT/ASSOCIATED PRESS

Americans took on consumer debt at a faster pace in June, suggesting a firming labor market and low gas prices may finally be prying open consumers’ wallets.

Outstanding consumer credit, a reflection of nonmortgage debt, rose $20.74 billion or at a 7.3% annual rate in June, the Federal Reserve said Friday. That’s a slight increase from May, when it increased at an upwardly revised annual rate of 5.9%, but less than April’s 7.6% pace.

Economists surveyed by The Wall Street Journal had expected a $17 billion increase in June.

Revolving credit, mostly credit cards, rose at a 7.4% annual rate, a jump from May when it rose at an annual rate of 2.1%.

Nonrevolving credit, made up largely of auto and student loans, rose at a 7.3% annual rate, a slight acceleration from May’s upwardly revised rate of 7.2% and April’s unrevised 6.2% growth pace.

U.S. employers added 215,000 nonfarm jobs in July, the Labor Department reported on Friday. Gross domestic product, the broadest measure of economic output, grew at a seasonally adjusted annualized rate of 2.3% in the second quarter.

But some economists still question whether Americans will pick up their spending at a time of stagnant wages, despite nearly five straight years of job growth. Consumer spending accounts for more than two-thirds of U.S. economic output, serving as an important driver of economic growth.

Related reading:

U.S. Consumer Confidence Falls Back Sharply in July

Americans Curb Their Spending Increases in June

Retailers Ring Up Consumer Caution

Consumer Credit Rises at a Slower Pace in May

U.S. Consumer Debt Grows in April as Credit-Card Use Surges

U.S. Consumers Boost Borrowing in March at Fastest Pace Since July

 


 


for economic news and analysis

for central banking news and analysis


Get WSJ economic analysis delivered to your inbox:


Sign up for the WSJ’s Grand Central, a daily report on global central banking


Sign up for the Real Time Economics daily summary

If the article suppose to have a video or a photo gallery and it does not appear on your screen, please Click Here

7 August 2015 | 7:00 pm – Source: blogs.wsj.com

[ad_2]

Leave a Reply

Your email address will not be published.