Consumer Credit Grows at Fastest Pace Since 2001 in March

Last week, the U.S. Federal Reserve released data which showed that in March 2016, consumer credit outstanding grew at its fastest pace since 2001, increasing $29.6 billion to $3.59 trillion. The total percent change based on an annual rate was 10 percent for the month. Significantly, revolving credit grew at an annualized pace of 14.2 percent, reaching 951.6 billion, whereas compared to the previous month it only grew at a rate of 3.7 percent. Nonrevolving credit grew at an annualized pace of 8.5 percent versus 4.2 percent in February. According to Standard & Poor’s, the data shows growth in the student loan sector, where loans outstanding grew $31.7 billion to $1.35 trillion, and the auto sector, where loans outstanding grew $13.5 billion to $1.05 trillion. According to S&P, “these are substantial increases that suggest household credit utilization is picking up and may yet support the economy.”

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