Consumer Borrowing Shows Marginal Increase in April
6/13/2017 8:11:00 PM
American households’ appetite towards credit sees the smallest month-to-month gain since 2011, according to the Federal Reserve.
Consumer borrowing for credit cards, auto loans and student loans increased marginally at a rate of 2.5 percent in April, according to the Federal Reserve’s latest Consumer Credit report.
It was the smallest percentage increase since borrowing declined 3.5 percent in August 2011, the Associated Press reports.
Total outstanding debt increased $8.2 billion, to approximately $3.8 trillion, in April, according to the Fed’s report.
Revolving debt, including credit card balances, increased by $1.5 billion to approximately $1 trillion.
Nonrevolving debt, including student loans and auto loans, increased by approximately $6.6 billion to approximately $2.8 trillion.
According to the Fed’s report, revolving credit increased at a rate of 1.75 percent while nonrevolving credit increased at an annual rate of 3 percent.
The revised March data saw a rise in total consumer credit, by $19.54 billion, with a seasonally adjusted annual rate of 6.2 percent, according to the report.
Economists, in a survey for The Wall Street Journal, estimated total consumer credit would increase by $15 billion in April.
Summer may see an uptick in consumer borrowing. Economists predicted consumption would pick up in the second quarter given the low unemployment rate and improving household balance sheets, according to a report form MarketWatch.
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