Non-Mortgage Consumer Debt Surges In Third Quarter

November 14, 2016

According to the Federal Reserve Board, consumer credit outstanding grew by a seasonally adjusted annual rate of 7.0 percent over the third quarter of 2016. The rate is 0.6 percentage point faster than the rate of growth in the previous quarter.

NAHB Eye on Housing reports that the acceleration is reflected in an increase in both revolving (credit card debt) and non-revolving (student and auto loans) credit.

Growth in consumer credit has been accelerating on a quarter-over-quarter basis in 2016. According to Figure 1, since falling to 5.6% growth in the first quarter of 2016, each subsequent quarter has experienced a faster rate of growth. In the second quarter of 2016, growth rates of both revolving and non-revolving credit recorded higher rates of growth relative to the first. However, in the third quarter, growth in non-revolving credit accelerated again while the growth of revolving credit decelerated.

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