Consumer Credit and Household Debt Rise
According to the National Association of Manufacturers’ (NAM) Monday Economic Report for this week, U.S. consumer credit outstanding rose 2.2% at the annual rate in September after dropping by 3.8% the month before; the data, however, were mixed.
Nonrevolving credit—including auto and student loans—rebounded 1.9% in September after falling by 9.8% in August. Revolving credit—including credit cards and other credit lines—slowed from 13.7% growth in August to 2.9% in September. NAM suggests that Americans felt more cautious in September in their credit card purchases even as the overall level of borrowing continues to increase. On a YoY basis, revolving and nonrevolving credit increased 9.9% and 1.5%, respectively.
Total household debt increased to $17.29 trillion in Q3, up 1.3% from Q2. Mortgage debt accounted for 70.2% of that total ($12.14 trillion). Other household debt balances included $1.60 trillion each for auto and student loans, $1.08 trillion for credit card balances and $349 billion in revolving credit.