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