Consumer Credit Growth Slows in February
Although overall consumer credit growth slowed in February, credit card spending was still robust, growing at a 5.9% annual rate.
The Federal Reserve reported late Monday that consumer credit in the United States increased by $5.3 billion, or at an annual rate of 2.4 percent. Nearly all of the gains were in credit card growth.
The numbers were in line with what analysts had been expecting. A poll conducted by Thompson Financial had economists predicting growth of $5.2 billion for the month. But the big surprise was the revision the Fed gave to January’s preliminary numbers.
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Last month, the Fed reported that consumer credit expanded by $6.9 billion in the first month of 2008. On Monday, the group revised that number to $10.3 billion. The revision was based on growth in non-revolving credit growth, such as auto and personal loans. The Fed said Monday that non-revolving debt grew at a 3.6 percent annual rate, much higher than the 1.1 percent it initially reported last month.
In February, the Fed said that consumers added $4.7 billion to revolving loan balances, primarily composed of credit card balances. The growth rate in February for credit card balances was 5.9 percent annualized.
Non-revolving credit growth slowed considerably in February, dropping to a 0.4 percent annual rate and adding only $500 million in total balances.
Total consumer credit outstanding in the U.S. stood at $2.54 trillion at the end of February.
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