Consumer Credit Declines in July
The total amount of consumer credit outstanding in the United States declined 1.5 percent in July from June on a seasonally adjusted basis, according to data the Federal Reserve Board released September 10.
Revolving credit—mainly in the form of credit cards—decreased at an annual rate of 6.8 percent in July from the prior month, while nonrevolving credit increased 1 percent. Nonrevolving credit is closed-end and is repaid on a prearranged payment schedule, such as an auto loan.
The seasonally adjusted total consumer credit outstanding in July was $2.71 trillion, down $3.3 billion from June. Depository institutions continued to hold the largest share of total consumer credit, with 44 percent, followed in order by finance companies, the federal government, credit unions, pools of securitized assets, and nonfinancial businesses. Finance companies as of July held the biggest share of nonrevolving credit, however, while depository institutions—banks and thrifts—held 79 percent of revolving credit.
The Federal Reserve Board releases the consumer credit statistical report monthly. The G.19 statistical release, "Consumer Credit," reports outstanding credit extended to individuals for household, family, and other personal expenditures, excluding loans secured by real estate.
September 24, 2012