Consumer credit in the U.S. climbed in September, as Americans increased borrowing for student and auto loans. Credit grew at a seasonally adjusted annual rate of 5.9 percent, up from August’s revised 5.2 percent growth, as outstanding credit rose to $15.9 billion, the Federal Reserve said Friday. For the third quarter, consumer credit grew 6.5 percent.
“The report was in line with what we’ve been seeing through 2014 where you have a decent amount of overall growth,” said Matt Schulz, senior analyst at CreditCards.com. “Until we see something change soon in either the jobs reports or consumer confidence, we don’t expect to see giant increases.”
The Federal Reserve's Consumer Credit Report analyzes two classes of credit, including revolving and non-revolving credit. Revolving debt, such as credit card balances, increased at a 2 percent rate, and non-revolving debt, or borrowing for auto and student loans, rose at a 7.3 percent rate.
The Fed’s data showed revolving credit rose $1.4 billion following a $201 million decline in August. Non-revolving credit gained $14.5 billion in September compared with a $14.2 billion rise in the prior month.