According to the Federal Reserve’s latest G.19 Consumer Credit Report, which tracks trends in consumer credit, excluding loans secured by real estate, in June consumer credit increased at a seasonally adjusted annual rate (SAAR) of 2.6% from the month of May. With revolving debt declining by -2.8% and nonrevolving debt increasing by 4.3%. Consumer credit in June totaled $4.1 trillion on a seasonally adjusted basis, with $992 billion in revolving debt and $3.1 trillion in nonrevolving debt. This is an increase of $9 billion from the previous month, with revolving debt decreasing by -$2.3 billion and non-revolving credit increasing by $11.3 billion. This month marks a recovery in consumer credit after two straight months of decline. The G.19 report also released estimates this month for the levels of and flows with respect to student loan and motor vehicle loan debt for the second quarter of 2020. On an unadjusted basis, student loan debt increased by -$2.2 billion and motor vehicle loan debt increased by $12.1 billion. Compared to last year, the second quarter flow in student debt was about $3.7 billion lower and motor vehicle loan debt was about the same. As of the second quarter of 2020, student loan and motor vehicle loan debt make up 92% of all non-real estate-related closed-ended credit.
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Nonrevolving Debt Fuels June Consumer Credit