US consumer credit in June expanded 37.69 billion much higher than the estimated 23.0 billion with revolving credit $17.86 billion and nonrevolving credit $19.83 billion with stocks and home prices higher and an improving job market.
US consumer credit in June expanded 37.69 billion much higher than the estimated 23.0 billion with revolving credit $17.86 billion and nonrevolving credit $19.83 billion with stocks and home prices higher and an improving job market.
US Consumer Credit for June 2021 (Q2 2021)
Consumer credit $37.69 billion versus estimate 23.0 billion, a seasonally adjusted annual rate of 8.8 percent during the second quarter.
“U.S. household debt rose at the fastest pace since 2013 in the second quarter, driven by a mortgage boom as Americans took advantage of low borrowing costs and sought more space to work from home. Household liabilities climbed $313 billion to $14.96 trillion as of the end of June, a 2.1% rise from three months earlier, the Federal Reserve Bank of New York said… Most of the increase came in mortgage balances. With the average 30-year rate declining in the period, millions of Americans with good credit took the opportunity to refinance and cut their monthly payments.” August 3 – Bloomberg (Alex Tanzi and Katia Dmitrieva)
Consumer spending accounts for more than two-thirds of U.S. economic activity saw a second straight quarter of double-digit growth. That helped to pull the level of gross domestic product above its peak in the fourth quarter of 2019.
“U.S. consumer borrowing surged in June by the most on record, reflecting large increases in credit-card balances and non-revolving loans. Total credit jumped $37.7 billion from the prior month after an upwardly revised $36.7 billion gain in May, Federal Reserve figures showed… On an annualized basis, borrowing increased 10.6%.” August 6 – Bloomberg (Reade Pickert)
Revolving credit $17.86 billion, increased at an annual rate of 10.7 percent In June, revolving credit increased at an annual rate of 22 percent,
Growth in nonrevolving credit, which includes auto loans as well as student loans made by the government, slowed to a pace of $19.831 billion from a rate of $27.601 billion in May. Increased at an annual rate of 8.3 percent. while nonrevolving credit increased at an annual rate of 7.2 percent.
“We expect consumer credit growth will continue at a healthy clip in the second half of 2021, supported by strong consumer spending and an easing of lending standards for consumer loans,” said Nancy Vanden Houten, lead economist at Oxford Economics in New York.
Source: Federal Reserve
From The TradersCommunity News Desk