Need To Know News

• August Consumer Credit is expected to increase $5bln following a $4.6bln increase in July

Late summer is typically associated with increases in Consumer Credit, though it will be interesting to see the impact of credit market issues on non-revolving credit.  Non-Revolving Credit (e.g. car and student loans) grew only $700mln in July,  a result of weakness in vehicle loans.  Non-Revolving Credit data going forward may provide a clear picture of deterioration in the credit market as its spreads into other sectors.

Recent increases in Revolving Credit are a mixed sign, in that consumer’s are likely to have increased their use of credit card debt in order to fund necessary purchases.  Revolving Credit grew 3.9% in July following a 2.8% increase in June.

Consumer Credit Rose $4.6bln or 2.12% in July, lower than the $8.5bln expected and following a downwardly revised $11bln increase in June (previosuly reported as $14.3bln).

July Revolving Creidt(e.g. credit cards) rose $3.9bln or 4.82%, following a $2.8bln increase in June, which was initially reported at $5.5bln.

July Non-Revolving Credit(e.g.student and auto loans) grew 0.5% or 678mln compared to a $8.1bln rise in June which was previously reported at $8.8bln.

The interest rate for new car loans issued at auto finance companies fell to 3.31% in July following a 5.49% rate offered in June.

July Consumer Credit is expected to increase $8.6bln after growing $14.3bln or 6.6% in June.

The use of revolving credit (e.g. credit cards) increased rose $5.5bln, or 6.9% in June, while non-revolving credit (e.g. car or student loans) rose a surprising $8.8bln, or 6.6%, given weakness in the auto sector.

June’s consumer credit figure doubled expectations, and current forecasts call for July’s number to be lower, but strong given seasonal patterns (summer numbers are usually higher).

July Consumer Credit is expected to increase $8.6bln after growing $14.3bln or 6.6% in June.

The use of revolving credit (e.g. credit cards) increased rose $5.5bln, or 6.9% in June, while non-revolving credit (e.g. car or student loans) rose a surprising $8.8bln, or 6.6%, given weakness in the auto sector.

June’s consumer credit figure doubled expectations, and current forecasts call for July’s number to be lower, but strong given seasonal patterns (summer numbers are usually higher).

Consumer Credit rose $14.3bln or 6.6% in June, more than doubling expectations and following an upwardly revised $8.1bln rise in May (previously reported as $7.8bln).

The use of revolving credit, such as credit cards, rose $5.5bln, or 6.9%, following May’s $6.1bln rise, which was initially reported as a $5.7bln increase.

Non-revolving credit use (e.g. student and auto loans) increased $8.8bln or 6.6%. That is compared to a $2bln rise in May, previously reported as $2.1bln.

June Consumer Credit is expected to increase $6.3bln after growing $7.8bln, or 3.6%, in May.

Use of revolving credit (e.g. credit cards) increased rose $5.7bln in May after a marginal increase in April. Non-revolving credit (e.g. student loans) rose $2.1bln, after rising $8.2bln in April.

April’s revolving credit number was particularly low, likely reflecting seasonal factors since borrowing doesn’t typically pick up until summertime. May’s number was back on track, and June’s should be as well given that consumer spending data held up over the period.

June Consumer Credit is expected to increase $6.3bln after growing $7.8bln, or 3.6%, in May.

Use of revolving credit (e.g. credit cards) increased rose $5.7bln in May after a marginal increase in April. Non-revolving credit (e.g. student loans) rose $2.1bln, after rising $8.2bln in April.

April’s revolving credit number was particularly low, likely reflecting seasonal factors since borrowing doesn’t typically pick up until summertime. May’s number was back on track, and June’s should be as well given that consumer spending data held up over the period.

Consumer Credit rose $7.8bln or 3.6% in May, in line with expectations and following a downwardly revised $7.8bln rise the prior month (previously reported as $8.9bln).

The use of revolving credit, such as credit cards, rose $5.7bln, or 7.1%, following April’s $424.3mln decline, which was initially reported as a $300mln increase.

Non-revolving credit use (e.g. student and auto loans) increased $2.1bln or 1.6%. That compared to a $8.2bln rise in April, previously reported as $8.6bln.

May Consumer Credit is expected to increase $7.3bln after growing $8.9bln, or 4.2%, in April.

Use of revolving credit (e.g. credit cards) increased only $300.4mln in April, or 0.4%, following a $5.8bln increase in March. Non-revolving credit (e.g. student loans) rose $8.6bln, or 6.5%, after increasing $7.3bln the prior month.

April’s revolving credit number was fairly low, likely reflecting seasonal factors since borrowing doesn’t typically pick up until summertime. Since consumer spending data have held up over the period, if May’s borrowing is similarly muted, data may be painting a picture of consumers switching from credit cards to cash — no surprise in the current environment, with consumer confidence near all-time lows.

May Consumer Credit is expected to increase $7.3bln after growing $8.9bln, or 4.2%, in April.

Use of revolving credit (e.g. credit cards) increased only $300.4mln in April, or 0.4%, following a $5.8bln increase in March. Non-revolving credit (e.g. student loans) rose $8.6bln, or 6.5%, after increasing $7.3bln the prior month.

April’s revolving credit number was fairly low, likely reflecting seasonal factors since borrowing doesn’t typically pick up until summertime. Since consumer spending data have held up over the period, if May’s borrowing is similarly muted, data may be painting a picture of consumers switching from credit cards to cash — no surprise in the current environment, with consumer confidence near all-time lows.