Analysis
The release shows continued growth in consumer credit overall but a sharp difference between revolving balances and loans such as auto and student credit. The annualized monthly rates are not year-over-year changes, and the figures may be revised.
August growth slowed and shifted toward nonrevolving credit
The Federal Reserve reported on October 7 that consumer credit increased at a seasonally adjusted annual rate of 1.9% in August, down from a revised 4.1% rate in July. Revolving credit, which includes credit-card balances, contracted at a 4.2% annual rate; nonrevolving credit grew at a 4.1% rate.
Seasonally adjusted consumer credit outstanding totaled $5.1968 trillion in August. Revolving credit accounted for $1.3524 trillion and nonrevolving credit for $3.8444 trillion.
Reported borrowing rates remained elevated
For August, the Federal Reserve reported an average 21.19% across commercial-bank credit-card accounts and 22.36% for accounts assessed interest. It reported 7.54% for 60-month new-car loans and 11.90% for 24-month personal loans. These are survey-based commercial-bank rates defined in the release.
What the release includes
The G.19 release covers most credit extended to individuals for household, family and other personal expenditures, but excludes loans secured by real estate. Nonrevolving credit includes vehicle, education and other installment loans. The preliminary August figures can be revised in later releases.
What remains uncertain
August values are preliminary and prior months were revised. The reported monthly growth rates are seasonally adjusted annual rates, not year-over-year changes, and the release excludes mortgages and other real-estate-secured borrowing.