Consumer Credit Growth Slows in March as Credit Card Use Drops - ABI

The Federal Reserve reported that consumer credit increased at a seasonally adjusted annual rate of 3.6 percent in March, down from a 4.3 percent rate in February, according to the ABA Banking Journal. Total outstanding credit increased $11.7 billion during the month (compared with $13.6 billion in February) to $3.87 trillion. Revolving credit, largely a reflection of credit card debt, declined at an annual rate of 3.0 percent to $1.03 trillion, compared to a 0.6 percent decrease in February. Non-revolving credit rose at a 6.0 percent annual rate, or $14.2 billion. Total non-revolving credit is now $2.85 trillion. Federal government holdings of student loans continue to be the largest portion of non-revolving credit, comprising approximately 41.5 percent of outstanding credit. Depository institutions and finance companies are secondary and tertiary holders, with 25.0 percent and 17.7 percent, respectively, of outstanding non-revolving credit.

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