Consumers took on more debt in June, pushing revolving credit balances higher, the Federal Reserve said Friday in its latest consumer credit report.
Consisting mostly of credit card debt, revolving credit balances climbed $17.8 billion to $992.2 billion, an annual rate of 22%.
As the economic recovery picks up, consumers are keen to spend. Friday’s report mirrored a separate Fed analysis on Monday that showed demand for consumer loans has jumped as bank lending standards have eased.
“Clearly this is a sign of confidence in the U.S. economy,” Bank of America said in a research report.
Total consumer credit increased by $37.6 billion in June from May, an annualized rate of 10.6%. The rise exceeded economists’ expectations for a $23 billion gain, according to Moody’s Analytics. Non-revolving credit, which includes auto and school loans, rose $19.8 billion. For the second quarter, total consumer credit outstanding increased an annualized 8.8%, data showed.
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