Consumer Credit Rises $18.6 Billion In May

Consumer spending posted a sizable gain in May as did consumer credit which rose $18.6 billion vs a $13.4 billion increase in April. But the gain in May was largely confined, as it often is, to non-revolving credit which, up $16.2 billion, reflects a mix of vehicle financing and student loans (which are tracked in this report). Revolving credit, where credit card debt is tracked, rose only $2.4 billion in the month. Consumer reluctance to run up their credit cards is definitely a plus for long-term consumer health but isn't a plus for short-term consumer spending.

Recent History Of This Indicator:
Consumer credit is expected to rise $16.0 billion in May following April's moderate $13.4 billion gain. Revolving credit has been showing intermittent lift but only real strength in this component would point to less reluctance among consumers to run up their credit cards. Non-revolving credit has been the strength of this report, in part reflecting easing loan terms for vehicle sales.