(Bloomberg) -- U.S. consumer debt rose in July more thanforecast as non-revolving credit grew by the most since Novemberand credit-card debt outstanding rebounded, Federal Reservefigures showed Monday.
Highlights of Consumer Credit (July)- Total credit climbed $16.6b (est. up $14b) from a downwardly revised $8.5b gain the prior month (prev. $10.2b)
- Non-revolving debt outstanding rose $15.4b m/m after $9.6b gain
- Revolving credit outstanding rose $1.3b m/m, after falling $1.2b
Key Takeaways
The surge in non-revolving debt, which includes loans foreducation and automobiles, in part reflects support in demandfor big-ticket items.
The increase in revolving debt, which includes credit cards, isconsistent with reports showing consumers were spending morefreely at the start of the third quarter. Retail sales posted asolid gain in July as Americans bought clothes, shopped online,and headed to restaurants.
Strong hiring and lower taxes are helping households even thoughinflation is ticking higher. The Fed's consumer credit reportdoesn't track debt secured by real estate, such as mortgages andhome equity lines of credit.
Other Details- Lending by the federal government, which is mainly for student loans, rose by $3.6 billion before seasonal adjustment
- Credit increased at a seasonally adjusted annual rate of 5.1 percent, after 2.6 percent in the prior month
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