U.S. consumer credit up, but credit card usage down

WASHINGTON Mon Oct 7, 2013 3:31pm EDT

A coffee shop displays signs for Visa, MasterCard and Discover, in Washington, May 1, 2013. REUTERS/Jonathan Ernst

A coffee shop displays signs for Visa, MasterCard and Discover, in Washington, May 1, 2013.

Credit: Reuters/Jonathan Ernst

WASHINGTON (Reuters) - U.S. consumer credit rose more than expected in August, but a third straight month of decline in credit card usage was consistent with recent tepid consumer spending.

Total consumer credit advanced by $13.63 billion to $3.04 trillion, Federal Reserve data showed on Monday.

Economists polled by Reuters had expected consumer credit to rise $12 billion in August after a previously reported $10.44 billion increase in July. This was revised down to a gain of $10.40 billion.

Revolving credit, which mostly measures credit-card use, fell $883.41 million, declining for a third straight month.

Nonrevolving credit, which includes auto loans as well as student loans made by the government, increased $14.51 billion in August. That followed a $12.23 billion increase in July.

(Reporting by Lucia Mutikani; Editing by Krista Hughes)

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Comments (2)
Universalist wrote:
This is good news actually. Credit card control is a good thing as well. Disciplined spending is the right and middle path. A round of applause for Americans!! Go thrifty…

Oh and don’t forget to recycle…….

Oct 07, 2013 3:59pm EDT  --  Report as abuse
It is understandable that car loan volume has increased. However, with all of the adverse publicity about student loan payback problems this news was surprising.
A bankruptcy cannot wipe out a student loan. Let’s home that the students are learning something that will help them obtain employment.

Oct 07, 2013 5:03pm EDT  --  Report as abuse
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