Economy

Economic Data Roundup (09/12/2016)

9/12/16 12:00 PM

iStock_000009946822_Small.jpgThe latest report from the Federal Reserve Board of Governors on credit utilization showed that Americans’ borrowing activity firmed in July (lagged release), with total U.S. consumer credit outstanding expanding by $17.7 billion at a seasonally adjusted annual rate of 5.8 percent. That was above the $15.6 billion gain economists had expected and the June increase was revised higher from $12.3 billion to $14.5 billion. Non-revolving credit, e.g. student and automobile loans, rose by $14.9 billion in July, the 59th month-over-month gain in a row and a significant rebound from June. As for revolving credit, this metric of Americans’ credit card use lifted by only $2.8 billion in July but that was not surprising following June’s (upward-revised) $9.2 billion spike. Moreover, the longer-term trends of an acceleration in revolving credit growth and a somewhat stalled expansion in non-revolving credit remain clearly intact. This should persist as long as job creation and household balance sheets continue to improve and enable more Americans to take on additional debt.

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Sources: Econoday, Twitter, Bloomberg, ZH, FRBG, FRBSL

Post author: Charles Couch