Federal Reserve's quarterly consumer credit report

US Consumer Credit Hits Record High with $25.452 Billion Surge in July

Sep 9, 2024, 07:41 PM

Consumer credit in the United States surged significantly in July 2024, rising by $25.452 billion, the largest monthly increase since November 2022. The Federal Reserve reported that consumer credit grew by 6.0%, with revolving credit, primarily from credit cards, increasing by 9.4% and non-revolving credit up by 4.8% on a seasonally adjusted annual rate (SAAR). This increase far exceeded the forecast of $11.2 billion and the expected $10.4 billion. The rise in consumer credit reflects a broader trend of Americans relying more heavily on credit to sustain spending amid economic uncertainties. The significant jump in borrowing, which marked a record high, is seen as a potential indicator of financial stress, with concerns about the sustainability of this reliance on debt.