After reporting a sharp jump in U.S. consumer credit in the previous month, the Federal Reserve released a report on Monday showing another bigger than expected increase in consumer credit in the month of August.
The Fed said consumer credit climbed by $17.9 billion in August after surging up by a revised $23.0 billion in July.
Economists had expected credit to increase by $15.5 billion compared to the $23.3 billion spike originally reported for the previous month.
Non-revolving credit, such as student loans and car loans, led the way higher, jumping by $19.9 billion in August after climbing by $13.7 billion in July.
On the other hand, the report said revolving credit, which largely reflects credit card debt, dipped by $2.0 billion in August after rising by $9.4 billion in the previous month.
The report said total consumer credit was up by 5.2 percent compared to the same month a year ago, as a 7.8 percent jump in non-revolving credit more than offset a 2.2 percent slump in revolving credit.
The material has been provided by InstaForex Company – www.instaforex.com