NEW YORK The commercial paper market grew in the latest week, suggesting some renewed business appetite for short-term credit even as economic growth seems to be slowing, according to Federal Reserve data released on Thursday.
In the week ended April 18, commercial paper outstanding rose $4.2 billion to $932.6 billion on a seasonally adjusted basis, the Fed said.
The increase reversed the decline in this outstanding short-term debt seen during the previous two weeks.
On a non-seasonally-adjusted basis, the supply of commercial paper, which companies use to finance payrolls and inventories, grew $5.2 billion in the latest week to $1.008 trillion.
While most of the major issuer categories showed growth in the latest week, commercial paper outstanding from foreign banks, on a non-seasonally adjusted basis, fell for a third consecutive week. It declined by $1.6 billion to $127.1 billion.
(Reporting by Richard Leong; Editing by James Dalgleish)