Fed Says Total Consumer Credit Outstandings Grew 5.7% in April
Consumer credit grew at a seasonally adjusted rate of 5.7% in April. Revolving credit increased at an annual rate of 13.1% during the month, while nonrevolving credit grew at an annual rate of 3.2%, the Federal Reserve said in a Wednesday (June 7) statistical release. Compared to the previous month, the total percentage change was the same, […]
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Consumer credit grew at a seasonally adjusted rate of 5.7% in April.
Revolving credit increased at an annual rate of 13.1% during the month, while nonrevolving credit grew at an annual rate of 3.2%, the Federal Reserve said in a Wednesday (June 7) statistical release.
Compared to the previous month, the total percentage change was the same, the revolving credit slowed from March’s annual rate of 14.6% and the nonrevolving credit increased from 2.7%.
Total outstanding consumer credit totaled $4.86 trillion in April, up from $4.84 trillion in March, according to the release. That total included $1.24 trillion of revolving credit and $3.62 trillion of nonrevolving credit, which were up from $1.23 trillion and $3.61 trillion, respectively, in March.
PYMNTS research has found that 83% of consumers made payments for credit products in the last 90 days and that credit, in general, is a significant part of life for most consumers across generations.
While credit card use is lower among Generation Z consumers, they and millennial consumers are the most likely to have increased their use of credit products in the last year, suggesting that they may catch up with older generations, according to “The Credit Economy: How Younger Consumers Make Credit Decisions,” a PYMNTS and i2c collaboration.
The report also found that more than half of younger consumers use credit for everyday purchases as a way to better manage their cash flow, while just 38% of baby boomers and seniors do the same.
Mastercard reported in April that consumers continue to embrace credit cards for everyday spending, with supplemental materials provided by the payments network along with its earnings results showing its gross dollar volumes up by 15%.
Urban consumers are more likely than others to use more credit products, with 83% of such consumers in all regions reporting they have made at least one credit product-related payment in the last 90 days, according to “New Reality Check: The Paycheck-to-Paycheck Report: The Regional Divide Edition,” a PYMNTS and LendingClub collaboration.
When it comes to auto loans, however, suburban and rural consumers take the lead, the report found.
The post Fed Says Total Consumer Credit Outstandings Grew 5.7% in April first appeared on PYMNTS.com.