Consumer credit outstanding rose at a seasonally adjusted annual rate of 4.25% during April, aided by a 6.5% increase in borrowing on non-revolving accounts, consisting primarily of closed-end loans for items such as mobile homes, tuition and vacations. Revolving credit – primarily credit card spending – increased only 0.4% during April, compared with 7.4% growth in March.
The increase in April's consumer credit outstanding compares with a 6.2% seasonally adjusted growth rate during March, according to preliminary estimates in the Federal Reserve Board's monthly Consumer Credit survey, released Friday.
Total consumer credit outstanding in April was $2.56 trillion, rising $8.9 billion, or 0.35%, from March and increasing $137.2 billion, or 5.6%, from nearly $2.43 trillion in April 2007.
Revolving credit during April, mostly borrowing on cards, equaled $956.9 billion, up a mere $300 million, or 0.03%, from $956.6 billion in March and rising $69.3 billion or about 7.8% from $887.6 billion in April 2007.
Non-revolving credit outstanding approached $1.61 trillion in April, up $8.7 billion or 0.54% from about $1.60 trillion in March and rose $68.0 billion or 4.4% from $1.54 trillion in April 2007.