U.S. Consumer Credit Growth Surges in June
Summary
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Largest consumer credit growth in three months.
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Revolving credit usage strengthens.
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Record increase in nonrevolving credit balances.
Consumer credit outstanding jumped $40.1 billion (7.7% y/y) in June, the largest monthly advance in three months, after a $23.8 billion May increase (revised from $22.3 billion). A $25.0 billion rise had been expected in the Action Economics Forecast Survey. The ratio of consumer credit outstanding to disposable personal income edged higher to 24.9% in June, the highest level since March 2020, from 24.8% in May.
Revolving consumer credit balances rose $14.8 billion (13.8% y/y) in June following a $7.2 billion May increase (revised from $7.4 billion). Revolving credit provided by depository institutions (90.9% of the total and mostly credit card debt) rose 15.5% y/y, the quickest growth since January 1997, up from May's 15.2% y/y. Borrowing from credit unions (6.2% of the total) increased 12.0% y/y, up from May's 11.1% y/y. Nonfinancial business loans (1.7% of the total) were unchanged in June from a year ago. The value of finance company loans (1.1% of loans) fell 21.0% y/y in June, the deepest year-over-year fall since December 2021.
Nonrevolving consumer credit balances surged a record $25.3 billion (5.8% y/y) in June following a $16.6 billion May rise (revised from $14.9 billion). Federal government lending, which issued 41.7% of nonrevolving credit, rose 3.2% y/y, the same rate as in May. Nonrevolving loans provided by depository institutions (26.4% of credit) grew 9.2% y/y, easing slightly from May's 9.5% y/y. Finance company lending (16.2% of loans) rose 2.0% y/y, up from May's 1.6% y/y. Growth of credit union nonrevolving loans (14.7% of the total) accelerated to 13.5% y/y in June, the fastest pace since July 2017, from 11.3% y/y in May.
These Federal Reserve Board figures are break-adjusted and calculated by Haver Analytics. The breaks in the series in 2005, 2010 and 2015 are the result of the incorporation of the Census and Survey of Finance Companies, as well as changes in the seasonal adjustment methodology. The consumer credit data are available in Haver's USECON database. The Action Economics figures are contained in the AS1REPNA database.
Winnie Tapasanun
AuthorMore in Author Profile »Winnie Tapasanun has been working for Haver Analytics since 2013. She has 20+ years of working in the financial services industry. As Vice President and Economic Analyst at Globicus International, Inc., a New York-based company specializing in macroeconomics and financial markets, Winnie oversaw the company’s business operations, managed financial and economic data, and wrote daily reports on macroeconomics and financial markets. Prior to working at Globicus, she was Investment Promotion Officer at the New York Office of the Thailand Board of Investment (BOI) where she wrote monthly reports on the U.S. economic outlook, wrote reports on the outlook of key U.S. industries, and assisted investors on doing business and investment in Thailand. Prior to joining the BOI, she was Adjunct Professor teaching International Political Economy/International Relations at the City College of New York. Prior to her teaching experience at the CCNY, Winnie successfully completed internships at the United Nations. Winnie holds an MA Degree from Long Island University, New York. She also did graduate studies at Columbia University in the City of New York and doctoral requirements at the Graduate Center of the City University of New York. Her areas of specialization are international political economy, macroeconomics, financial markets, political economy, international relations, and business development/business strategy. Her regional specialization includes, but not limited to, Southeast Asia and East Asia. Winnie is bilingual in English and Thai with competency in French. She loves to travel (~30 countries) to better understand each country’s unique economy, fascinating culture and people as well as the global economy as a whole.
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