The Federal Reserve on Friday released its preliminary report on consumer credit for the month of August 2016. On a seasonally adjusted basis, consumer credit rose 8.5% in the month, up from 5.9% growth posted in July. In dollar terms, consumer credit rose by $25.8 billion month over month. Analysts had been expecting an increase of $16.6 billion.
Total consumer debt rose to $3.687 trillion in August of which $974.6 billion is revolving (mostly credit card) debt and $2.712 trillion is non-revolving debt. Revolving debt rose by $5.6 billion (7%) and non-revolving debt rose by $20.2 billion (9%). Revolving credit comprises primarily credit card balances and non-revolving credit includes motor vehicle loans, student loans, among others, and may be secured or unsecured. Mortgage debt is not included in the report.