Consumer Credit Advances in March
The total amount of consumer credit outstanding advanced in March, although it grew at a weaker-than-expected pace. The $7.9 billion increase in consumer borrowing came in well under economists' forecasts and was significantly less than the $18.6 billion gain seen in February.
The 3.4 percent growth in consumer credit outstanding was driven largely by nonrevolving debt, which increased $9.8 billion from February. Nonrevolving debt, or closed-end borrowing with a prearranged repayment schedule, is mainly made up of auto and student loans.
Meanwhile, consumers held tight to their credit cards in March. Revolving credit, which is primarily made up of credit card spending, fell $1.7 billion from the previous month. Growth during the first quarter was basically flat, expanding at a seasonally adjusted annual rate of 0.2 percent.
The Federal Reserve publishes consumer credit data around the fifth business day of each month. The report includes loans made to individuals for household, family, and other personal spending but does not include home mortgages and real estate-secured loans.
May 28, 2013