The increase in consumer loans in the USA exceeded expectations in September
Quick Look
- According to the data announced by the US Federal Reserve, September consumer loans increased by 27.8 billion dollars and reached 5.22 trillion dollars.
- Market expectation was for an increase of $13.4 billion.
- Revolving loans increased by 16.3 billion dollars and non-revolving loans increased by 11.6 billion dollars.
AI-generated summary
Why It Matters
The US Federal Reserve releases monthly consumer credit data. The data is for September, and revolving and non-revolving loan categories are reported separately.
The US Federal Reserve (Fed) announced consumer loan data for September.
Accordingly, consumer loans increased by 27.8 billion dollars in September compared to the previous month, reaching 5.22 trillion dollars.
Market expectation was that consumer loans would increase by 13.4 billion dollars in this period.
During the said period, credit card and similar revolving loans increased by 16.3 billion dollars, and non-revolving loans such as automobile and student loans increased by 11.6 billion dollars.
Consumer loans increased by 6.4 percent on an annualized basis in September.
Consumer loans increased by 4.2 percent on an annualized basis, adjusted for seasonal effects, in the third quarter. During this period, revolving loans increased by 4.1 percent and non-revolving loans increased by 4.2 percent.
Open Questions
- What factor in consumer behavior explains the credit increase?
- The impact of these data on the Fed's interest rate decision
