Consumer Credit Very Strong In August

Consumer credit proved very strong in August, up an outsized $25.9 billion for the sharpest gain since September last year. And there's sizable strength in revolving credit, a component that had been lagging badly this cycle but has been moving higher all year. Revolving credit rose $5.6 billion in August for the third highest gain this year. Gains here suggest that consumers are more willing to drive up their credit cards, which is uncertain news for household wealth but clearly good news for the nation's retailers. Nonrevolving credit is also very strong in the month, up $20.2 billion and reflecting not only demand for vehicle financing but also student loans which are tracked in this component.

Recent History Of This Indicator:
Consumer credit is expected to rise $16.6 billion in August following July's $17.7 billion gain. But gains for revolving credit (credit cards) have been limited while non-revolving credit has been the consistent strength of this report, underpinned by student loans but also reflecting solid demand for vehicle financing.