Economic Report: U.S. consumer borrowing accelerates strongly in September
Consumer borrowing accelerated in September, according to Federal Reserve data released Friday.
Total consumer credit increased $29 billion, up from a $13.8 billion gain in August.
Economists had been expecting a $16 billion gain, according to the Wall Street Journal forecast.
The gain in September translates into an annual growth rate of 8.3% in September, up from a 3.8% gain in the prior month.
Revolving credit, like credit cards, jumped 11.8% in September after a 3.4% gain in the prior month.
Nonrevolving credit, typically auto and student loans, rose 7.2% after a 4% growth rate in the prior month. This category of credit is much less volatile. It fell briefly at the start of the pandemic before returning to steady growth, although more recently, it has been depressed by the lack of supply of new cars.
The data does not include mortgage loans, which is the largest category of household debt.