Consumer Credit Rose Nearly 16 Billion In September

Consumer credit outstanding rose $15.9 billion in September, right in line with expectations. Once again the gain is greatly skewed to non-revolving credit which rose $14.5 billion on strength in auto financing but also once again on the government's acquisition of student loans. The revolving side, in what is once again a disappointment for retailers, rose only $1.4 billion. Until consumers start using their credit cards, growth in retail sales will remain limited.

Recent History Of This Indicator: Consumer credit outstanding in August slipped $0.2 billion to end five straight months of gains. Non-revolving credit outstanding, boosted by strong vehicle sales and the government's continued acquisition of student loans from private lenders, rose yet again, up $13.7 billion for the 36th straight month of increase. But the gain for the non-revolving component was the smallest since January and, combined with the slippage in revolving credit, made for a lower-than-expected total increase of $13.5 billion.