Consumer Credit Expands in Q3 2021

On Friday (11-5-21), the Federal Reserve released their G.19 report for Q3 2021. With further analysis provided by the National Association of Home Builder (NAHB), the report shows that non-real estate-secured consumer credit increased at a seasonally adjusted annual rate (SAAR) of 5.6% in Q3 of 2021, with revolving debt increasing by 7.4% and nonrevolving debt increasing by 5.1%. Consumer credit totaled $4.4 trillion on a SAAR with $1 trillion comprised of revolving debt and $3.4 trillion in nonrevolving debt. This outstanding level marks a total increase of $60 billion from the second quarter, with revolving credit increasing by $18 billion and non-revolving credit increasing by $42 billion.

The non-seasonally adjusted data show that holdings of revolving credit (e.g., credit card debt) at finance companies continued their downward trajectory, a historical trend that began during and after the Great Recession of 2008-2009. Meanwhile, holdings at depository institutions, of which commercial banks are a part, remained steady relative to prior months.