US Consumer Credit Slows in Q1
Consumer Credit Slows in the First Quarter of 2025
According to the Federal Reserve’s G.19 Consumer Credit Report, with additional analysis by the National Association of Home Builders (NAHB), total outstanding consumer credit reached $5.01 trillion in Q1. This is an increase of 1.53% at a seasonally adjusted annual rate (SAAR) compared to the previous quarter, and a 1.93% increase compared to 2024Q1. Both rates have slowed from the previous quarter.
Nonrevolving Credit
Nonrevolving credit, largely driven by student and auto loans (the G.19 report excludes mortgage loans), reached $3.68 trillion (seasonally adjusted) in Q1. This marks a 1.23% increase (SAAR) from the previous quarter, and a 1.56% increase from last year.
Student loan debt balances stood at $1.80 trillion (not seasonally adjusted), marking a 2.48% increase from a year ago.
Auto loans reached a level of $1.56 trillion (not seasonally adjusted), a year-over-year increase of only 0.26%, marking the slowest growth rate since 2010.
Revolving Credit
Revolving credit—primarily made up of credit card debt—rose to $1.32 trillion (seasonally adjusted) in Q1. This represents a 2.36% increase (SAAR) from the previous quarter and a 2.98% increase year-over-year. Both measures reflect a notable slowdown, marking the weakest growth in revolving credit in several years.
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