(Bloomberg) -- U.S. consumer debt rose more than estimated inAugust, boosted by gains in both revolving and non-revolvingcredit, Federal Reserve figures showed Friday.
Highlights of Consumer Credit (August)- Total credit increased $20.1b, the most since May (est. up $15b) after a revised $16.6b in the prior month
- Revolving credit outstanding climbed $4.8b m/m, after a $1.4b gain
- Non-revolving debt outstanding jumped $15.2b m/m after a $15.2b rise
Key Takeaways
Non-revolving debt, which includes loans for education andautomobiles, posted the best back-to-back monthly gains sincelate last year. The increase in revolving debt, which includescredit cards, was the most since May, a sign consumers continueto spend more freely.
Steady hiring and tax cuts have helped households improve theirfinances, though wage growth has remained moderate throughoutthe economic expansion.
The Fed's consumer credit report doesn't track debt secured byreal estate, such as home equity lines of credit and homemortgages.
Other Details- Non-revolving lending by the federal government, which is mainly for student loans, increased by $20.2 billion before seasonal adjustment
- Credit rose at a seasonally adjusted annual rate of 6.2 percent, after 5.1 percent in the prior month
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