Consumer credit extended its expansion streak to kick off the year as revolving and non-revolving debt grew, new Federal Reserve data confirm.
U.S. consumer credit increased by $14.8 billion in January, up from $11.56 billion in December. This fell short of the market estimate of $20 billion and represented the second-lowest print since the central bank started raising interest rates.
Overall, consumer credit advanced at a seasonally adjusted annual rate of 3.7 percent, up from an upwardly revised 2.9 percent in the previous month, according to the Fed’s G.19 Report. This included an 11.1 percent year-over-year surge in revolving credit—mostly credit cards and lines of credit—and an annualized jump of 1.2 percent in non-revolving credit, such as mortgages, automobile loans, and student loans….