Consumer Credit Rises Less Than Expected

Consumer credit rose a lower-than-expected $13.1 billion in August which masks, however, a sharp gain for revolving credit. This component, which is where credit-card debt is tracked, rose a sizable $5.8 billion in a gain that will renew talk of slackening credit standards among lenders. The gain for the nonrevolving component, where auto financing and also student loans are tracked, is an undersized $7.3 billion and explains the weakness in the headline. But this report is not about weakness but about strength, at least strength for consumer spending.

Recent History Of This Indicator:
Consumer credit has been on the rise this year though revolving credit, which is where credit cards are tracked, did slow in July. Nonrevolving credit, reflecting growth in vehicle financing and student loans, has been very strong. Forecasters are calling for a $16.0 billion rise in August vs $18.5 billion in July.