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.
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