| Consumer Credit |
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Released On 7/9/2012 3:00:00 PM For May, 2012
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Prior | Prior Revised | Consensus | Consensus Range | Actual |
| Consumer Credit - M/M change | $6.5 B | $10.0 B | $8.5 B | $5.0 B to $15.6 B | $17.1 B |
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Highlights
Consumer credit jumped $17.1 billion in May for the largest increase in what has been a strong year for this series. The news is especially good given a giant $8.0 billion jump in revolving credit which is by far the strongest gain of the recovery. Consumer willingness to use credit cards could give a boost to what have been sluggish retail sales in recent months. Nonrevolving credit, which is being driven higher by strong demand for student loans including in the latest month, rose $9.1 billion .
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Market Consensus before announcement
Consumer credit outstanding gained $6.5 billion in the April report. The Federal government component of this report continued to post large gains as demand for student loans was very strong. For indications on the consumer, the April report shows softness with non-revolving credit down $3.4 billion.
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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=22821)
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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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