Consumer credit is still on the rise. Is it due to the public borrowing for summer vacations, or is it something else? The latest report from the Federal Reserve shows that credit rose during the month of May. It is not just rise, it rose by 8% annualized and that was the highest gain in 2012. The gain was by $17.12 billion to over $2.57 trillion. Dow Jones was calling for only $7.8 billion and Bloomberg had a consensus of a build of $8.5 billion.
Today’s report almost feels like Christmas in May because the 8.04% rise was the highest since December’s rise of 8.27%. You would expect to see credit get used in December because of the Christmas holidays. Is the buildup in May tied to the pre-vacation season? Or are the retail sales holding up better than some of the numbers might be suggesting?
There is also more good news if you like to see credit expansion. The figure from April’s gain was revised up to $9.95 billion from $6.51 billion originally telegraphed.
Non-revolving credit rose by $9.1 billion to $1.703 trillion and those loans include items such as car loans and student loans. Now you know why we projected that the student loan market will hit $1 trillion by the end of 2012 as the report showed that this student segment was up $6.2 billion to $464.9 billion.
The debt on credit cards and other revolving credit rose by just over $8 billion to $870.19 billion in May.
JON C. OGG
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
