The growth in the consumer credit sector has slowed for the second month in a row thanks in part to a decline in a credit card usage. The trend hinted at the general caution held by many consumers regarding how they spend their money.
The Federal Reserve stated that consumer credit experienced a rise of 4.4% on the annual rate, which is down from 5% in June. Meanwhile, credit expanded by $10.4 billion over the same month. Analysts had predicted a $12.5 billion gain.
Credit has been expanding since midway through 2010, with consumers still recovering from the 2007-09 recession. That trend has supported economic growth that was previously being held by consumers who were spending liberally.
Overall, the increases in credit were driven by the non-revolving facilities, such as auto loans, student loans, and non-revolving credit jumped up to $12.3 billion during the month.
The Fed provided no adjustment data to for the season, and stated student loans were made by the government. The year-over-year growth in the category for lending held to the same as in July.
The government-made student loans advanced by 21% from last year. Twelve-month growth held steady at below 25% overall throughout 2013. The outcome is an important one, but it is well below the 81% that was seen in September of 2010.
Currently, car sales appear to bolster the non-revolving sector of loans. Auto saels have shot up sharply in the year and were near a post-recession this July. However, in August, auto sales saw a rise to their highest levels since last 2007.
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