US Consumer Credit Rises $10.4 Billion, Largely on Credit Cards

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(Bloomberg) — US consumer borrowing rose in July, reflecting a rebound in credit-card balances.

Total credit increased $10.4 billion, Federal Reserve data showed Friday. The gain, which isn’t adjusted for inflation, was less than the $16 billion median forecast in a Bloomberg survey of economists.

Revolving credit outstanding, which includes credit cards, climbed $9.6 billion after declining in the previous month. Non-revolving credit, such as loans for school tuition and vehicle purchases, rose $773 million.

Despite persistent inflation and high interest rates, consumer spending has remained resilient and helped power the economy. Some have resorted to credit cards and savings to do so, but with savings shrinking and delinquencies on the rise, some economists doubt the current spending momentum is sustainable.

Prices remain elevated, and the imminent resumption of student-loan payments is expected to put further strain on household finances going forward.

A report earlier Friday showed household net worth rose to a record in the second quarter.

–With assistance from Jordan Yadoo.

©2023 Bloomberg L.P.





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