| Consumer Credit |
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Released On 6/7/2012 3:00:00 PM For Apr, 2012
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Prior | Prior Revised | Consensus | Consensus Range | Actual |
| Consumer Credit - M/M change | $21.4 B | $12.4 B | $12.0 B | $7.5 B to $18.9 B | $6.5 B |
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Highlights
Student loans are once again behind a rise in consumer credit which is up $6.5 billion in the April report. The series includes benchmark revisions and a sizable $9 billion downward revision to March where credit still rose a very sharp $12.4 billion. The Federal government component of this report continues to post large gains as demand for student loans is very strong. For indications on the consumer, the April report shows softness with non-revolving credit down $3.4 billion.
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Market Consensus before announcement
Consumer credit outstanding jumped $21.4 billion to $2.54 trillion in March. Prior months showed very sizable gains of $20.0 billion in November, $16.3 billion in December, $18.6 billion in January, and $9.3 billion in an upwardly revised February. The gain was led by non-revolving credit where the gain was concentrated in student loans. Also revolving credit did rise, up $5.2 billion in the month following two prior months of declines.
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Definition
The dollar value of consumer installment credit outstanding. Changes in consumer credit indicate the state of consumer finances and portend future spending patterns.
Why Investors Care
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![[Chart]](showimage.asp?imageid=22652)
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The debt-to-income ratio shows how indebted consumers are relative to income. A rising ratio indicates that consumers are taking on greater debt burdens with respect to income growth. In a growing economy, this may not be dangerous. However, indebtedness could quickly become a problem if income and employment conditions turn around. The yearly change in debt outstanding shows yearly trends in debt growth and tends to be less volatile than the monthly change.
Data Source: Haver Analytics
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