Consumer Credit Close To Expectations

Consumer credit came in close to expectations, up $17.1 billion in May as consumers continued to run up their credit-card debt at April's accelerated pace following more conservative spending in prior months. Revolving credit, reflecting credit card debt, rose $7.2 billion in May after rising $7.0 billion previously, while nonrevolving credit, where student loans and vehicle financing are tracked, rose $9.9 million versus May's $10.5 billion increase.

As in the previous month, the May increase in revolving credit puts the annualized rate for the month at 8.2 percent (7.9 percent previously), a fast pace that suggests consumers have become much less conservative than in the first quarter, which is a negative for household wealth but a plus for consumer spending.