U.S. consumers increased their borrowing in August far more than expected, according to statistics recently released by the Federal Reserve. Consumer credit rose $18.12 billion, or 8% seasonally adjusted, to $2.73 trillion, with both revolving and non-revolving credit rising. Credit unions, too, saw increases in member borrowing in revolving and non-revolving credit.
Economists surveyed by Bloomberg had forecast a median increase totaling $7.25 billion (Bloomberg.com October 5).
Driving the increases were non-revolving loans, especially loans for automobiles and education, and the first gain in revolving credit (which includes credit card debt) in the three months. The overall increase is the most increase in three months and compares with a revised decrease of $2.5 billion during July.
At credit unions, members borrowed $238 billion in August, up from $235.6 billion in August and up from $220.9 billion borrowed during second quarter of 2011.
Nationally, revolving debt totaled $854.9 billion in August, a 5.9% increase over July's $850.7 billion in July. The total revolving debt borrowed in second quarter of 2011 was $850.2 billion.
For credit unions, revolving credit card debt reported for August totaled $38.1 billion, an increase over the $37.4 billion recorded during the previous three months. In second quarter of 2011, credit unions said members' revolving credit totaled $35.8 billion.
Nationally, non-revolving debt for August totaled $1.87 trillion, a 9% increase over $1.857 trillion in July. That compares with $1.731 trillion borrowed during second quarter of 2011.
Credit unions reported non-revolving debt totaled $199.9 billion for August. That is an increase over the $198.2 billion they reported for July. In second quarter 2011, credit unions reported members borrowed $185.1 billion in non-revolving credit.
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