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Consumers Take on More Debt
Thursday, September 11, 2014 6:35 AM

Total outstanding consumer credit, excluding loans secured by real estate like home mortgages, rose at a seasonally adjusted annual rate of 9.7 percent in July from the prior month to $3.238 trillion, according to the Federal Reserve. That was up from growth of 7.1 percent in June and 7.3 percent in May.

Outstanding revolving credit, mostly credit-card debt, rose at a 7.4 percent pace in July to $880.54 billion, the fastest growth rate since April. Outstanding non-revolving credit, a category that includes car and student loans, rose at a 10.6 percent rate to $2.357 trillion, its fastest monthly pace since February 2013.

Consumer spending generates more than two-thirds of U.S. economic output. A surge in spending on durable goods like automobiles boosted economic growth during the second quarter, and stronger consumption fueled in part by borrowing could lead to stronger overall growth in the second half of the year.


(Source: The Wall Street Journal)