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Consumer credit rises more than expected in July

Akin Oyedele   

Consumer credit rises more than expected in July
Stock Market1 min read

US consumer credit balances rose by $17.71 billion in July, according to the Federal Reserve.

Economists had estimated that credit balances increased to $16 billion, according to Bloomberg.

Outstanding revolving credit, which includes credit-card purchases, rose at a 3.4% annual rate to $969 billion.

Non-revolving credit - the type in which accounts close once all payments have been made - rose at a 6.7% annual rate to $2.7 trillion.

The increases in credit balances were reflected in data on consumer spending released late in August by the Commerce Department. Personal spending rose 0.3% in July, and spending in the prior month was revised higher, suggesting that consumers could continue to be a crucial boost to overall economic growth in the third quarter.

The initial report for June showed that credit balances rose by $12.32 billion, the slowest pace in four years, as growth in non-revolving credit slowed. This was revised up on Thursday to $14.53 billion.

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