Economy

Economic Data Roundup (10/10/2016)

10/10/16 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 August (lagged release), with total U.S. consumer credit outstanding expanding by $25.9 billion at a seasonally adjusted annual rate of 8.5 percent. That was significantly better than the $16.6 billion gain economists had expected, and the July increase was revised slightly higher to $17.8 billion. Non-revolving credit, e.g. student and automobile loans, rose by $20.2 billion in August, the 60th month-over-month gain in a row and the largest sequential increase in nearly a year. As for revolving credit, this metric of Americans’ credit card use lifted by $5.6 billion in August, a welcome rebound from July’s paltry $2.8 billion gain. 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