Consumer Credit Accelerates Slightly in March
|Total consumer credit increased $16.4 billion in March. Revolving credit growth was tepid in Q1, consistent with the slow pace of consumer spending growth and the rise in the personal saving rate during this period.
Revolving Credit Growth Slows
- Consumer credit rose a trend-like $16.4 billion in March. After peaking at a 6.8 percent year-over-year growth in November, revolving credit has decelerated in the subsequent months.
- Real personal consumption in Q1 grew at the slowest annual rate since 2009. Coupled with a 0.7 percentage point increase in the personal saving rate between December and March, the slowdown is not altogether surprising.
Nonrevolving Credit Resilient
- Through Q1, nonrevolving credit growth remained fairly steady, despite the slowdown in auto sales seen through the first few months of the year.
- A breakdown of nonrevolving credit growth into its subcomponents is not yet available for Q1, but it is possible that a jump in student loan borrowing during the quarter helped offset the autos slowdown.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.