(Bloomberg) -- U.S. consumer debt rose in May by the most in six months on more credit-card debt outstanding and non-revolving loans, Federal Reserve figures showed Monday.
Highlights of Consumer Credit (May) |
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Key Takeaways
The increase in revolving debt, which includes credit cards, shows consumers were spending more freely midway through the second quarter. After slowing in March to recoup from a debt- laden fourth-quarter, households picked up the pace of credit in consecutive months.
The rise in non-revolving debt, which includes educational and auto loans, partly reflects steady motor-vehicle sales. The Fed's consumer credit report doesn't track debt secured by real estate, such as home equity lines of credit and home mortgages.
The results signal a modest acceleration for second-quarter spending amid recent tax cuts and a robust labor market. Still, moderate wage gains may encourage households to be more conscious about taking on too much debt.
Other Details
- Lending by the federal government, which is mainly for student loans, rose by $4.1 billion in May, before seasonal adjustment
- Credit increased at a seasonally adjusted annual rate of 7.6 percent after 3.2 percent in April
To contact the reporter on this story: Jeff Kearns in Washington at jkearns3@bloomberg.net
To contact the editors responsible for this story: Scott Lanman at slanman@bloomberg.net, Vince Golle
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