In July, US consumer credit grew by $18.06 billion, exceeding analyst forecasts that predicted an increase between $11.7 billion and $16 billion. According to the Federal Reserve's G.19 report, this growth was driven by increased use of credit cards and auto loans.
This figure marks an acceleration compared to the $14.17 billion increase recorded in June, and a significant shift from May, when consumer credit growth remained essentially flat.
As of June, total outstanding consumer credit reached approximately $5.17 trillion. This amount consists of roughly $1.35 trillion in revolving credit, such as credit cards, and $3.82 trillion in non-revolving credit, including auto, student, and personal loans.
Broadening the scope to include mortgage debt, Equifax data shows that total US consumer debt reached approximately $18.25 trillion, representing a 2.1% year-over-year increase.
Industry data indicates that delinquency metrics are improving. Year-over-year growth in total consumer credit has remained in the low-to-mid single digits.