Consumer Credit Growth Slows as Interest Rates Fall
Consumer credit outstanding increased at a seasonally-adjusted annual rate of 5.7 percent in the first quarter, according to data released by the Federal Reserve on Tuesday afternoon. Non-revolving credit led the increase with an 8.1 percent gain for the quarter, while revolving credit — credit that is automatically renewed when debt is paid off — was little changed at +0.2 percent. Total outstanding credit was just over $2.8 trillion.
Consumer credit climbed $8.0 billion, or 3.4 percent, on the month in March. Economists were looking for an increase of $15.0 billion. Revolving credit fell 2.4 percent sequentially, while non-revolving credit increased 5.9 percent. This increase in non-revolving credit indicates gains in loans for car sales as well as private student loans. Overall the report was fairly soft, and did not seem to have a material impact on the markets.