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July 8, 2016 | Consumer Credit Jumps $18.6 B, Mostly Student Loans and Autos

Mike 'Mish' Shedlock

Mike Shedlock / Mish is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction.

Consumer credit rose 6.25 percent according to the Fed G.19 Consumer Credit Release for May.

Revolving credit increased at an annual rate of 3 percent, while nonrevolving credit increased at an annual rate of 7-1/4 percent.

consumer credit 2016-07-08

The total rise in consumer credit is $18.6 billion. Non-revolving debt, a category that includes auto loans, student loans, boats, and vacations accounts for $16.2 billion of the total increase.

Student loans and motor vehicle loans typically represent the bulk of nonrevolving credit. Thanks to easy credit, subprime auto loans likely played a part, but there are no details to state specific amounts.

Revolving credit (credit cards) rose $2.4 billion.

Mike “Mish… Shedlock

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July 8th, 2016

Posted In: Mish Talk

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