Consumer Credit Surges 6.7 Percent in June

U.S. consumers added a total of $14.3 billion to outstanding debt in June, the largest jump in consumer credit in seven months, according to data released Thursday by the Federal Reserve.

The $14.3 billion increase, corresponding to an annual growth rate of 6.7 percent, far exceeded analysts’ expectations. Economists polled by Bloomberg News had expected growth of around $6.3 billion. In May, consumer credit expanded by $8.1 billion, or at a 3.8 percent annual rate, according to revisions released Thursday by the Fed.

Total consumer credit outstanding stood at $2.59 trillion at the end of June. The Fed’s monthly numbers, commonly called the G.19, do not include debt backed by real estate.

Consumers added $5.5 billion to revolving credit, or credit card, balances in June, a growth rate of 6.8 percent annualized. In May, credit balances increased at a 7.6 percent annual rate. For the second quarter, credit card balances increased at a 4.9 percent annual rate compared to the 6.8 percent annual growth rate for credit card debt in the first quarter.

Non-revolving credit – such as auto, student and personal loans – expanded at an annual rate of 6.6 percent, or by a total of $8.8 billion. For the second quarter, non-revolving debt also expanded at an annual rate of 4.9 percent, but that rate was the fastest for a quarter since the third quarter of 2007.