| Consumer Credit |
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Released On 11/7/2012 3:00:00 PM For Sep, 2012
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Prior | Prior Revised | Consensus | Consensus Range | Actual |
| Consumer Credit - M/M change | $18.1 B | $18.4 B | $10.2 B | $7.0 B to $15.0 B | $11.4 B |
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Highlights
Another big increase in student loans drove consumer credit higher, up $11.4 billion vs August's very large revised gain of $18.4 billion. The non-revolving component, home to the student loan category, rose $14.3 billion in the month on top of August's $14.1 billion gain. Revolving credit, where credit card debt is tracked, actually fell, down $2.9 billion for the third decrease in four months. Contraction here belies the strength seen in ex-auto retail sales over this period and perhaps points to a rising share of cash transactions at retailers.
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Market Consensus before announcement
Consumer credit outstanding in August jumped $18.1 billion, split between a $13.9 billion rise for non-revolving credit and a $4.2 billion rise for revolving credit. Non-revolving credit showed across the board gains reflecting that month's very strong vehicle sales but mostly a surge in the federal government component which is where Sallie Mae student loans are classified.
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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=23495)
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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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