US Consumer Credit Outstanding Growth Slowed in July

On Friday (9-8-23), the Federal Reserve released its latest G.19 Consumer Credit report. According to the report, with additional analysis provided by the National Association of Home Builders (NAHB), consumer credit outstanding growth slowed to a seasonally adjusted annual rate (SAAR) of 2.5% in July, down from 3.4% in June. Revolving credit growth reaccelerated to 9.2% in July, potentially reflecting strong consumer sentiment and job security in a tight—albeit cooling—labor market. In contrast, nonrevolving consumer debt outstanding was up just 0.2% over the month.

Over the past 12 months, total revolving consumer credit has soared 10.8%, more than offsetting slow growth in nonrevolving credit outstanding. Total consumer credit outstanding stands at $5.0 trillion (both break-adjusted and seasonally adjusted), with $1.3 trillion in revolving debt and $3.7 trillion in non-revolving debt.

Seasonally adjusted revolving and nonrevolving debt accounted for 25.5% and 74.5% of total consumer debt, respectively.