Slower Credit Growth for the New Year
Are you using more or less credit these days? If your habits track the latest data released by the Federal Reserve, your rate of consumer credit growth has slowed considerably.
The Fed's release for January 2017 revealed that outstanding consumer credit rose by $8.8 billion to $3.77 trillion for a seasonally adjusted annualized growth rate of 2.8% — the slowest rate of consumer credit growth in over five years. This aligns with the Fed's December 2016 report showing that 2016 as a whole brought the smallest annual increase in household credit since 2013.
January's change was driven in large part by a drop in revolving credit (such as credit card debt). Revolving credit dropped by $3.8 billion, partially neutralizing a $12.6 billion increase in non-revolving credit like student loans and auto loans.
It's Too Early to Tell
One potential implication: consumers are beginning to put the brak...
from MoneyTips https://www.moneytips.com/todays-headlines-consumer-credit-growth-slows/686
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