With a drop in revolving credit partly offsetting a continued increase in non-revolving credit, the Federal Reserve released a report on Tuesday showing a smaller than expected increase in total consumer credit in the month of June.
The report showed that consumer credit rose by $6.5 billion in June following a downwardly revised increase of $16.7 billion in May. Economists had expected credit to increase by about $10.3 billion compared to the $17.1 billion increase originally reported for the previous month.
The continued increase came as non-revolving credit such as student loans and car loans rose by $10.2 billion in June after climbing by $9.2 billion in May.
On the other hand, revolving credit, which largely reflects credit card debt, fell by $3.7 billion in June after jumping by $7.5 billion in May.
The Fed also said consumer credit increased at an annual rate of 3.0 percent in June, as a 7.2 percent increase in non-revolving credit was partly offset by a 5.1 drop in revolving credit.
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