June consumer credit up for tenth straight month
WASHINGTON (MarketWatch) - U.S. consumers increased their debt in June by a seasonally adjusted $6.5 billion, the Federal Reserve reported Tuesday. This is the tenth straight monthly gain in consumer borrowing. The increase in June was not as strong as the roughly $10 billion gain expected by Wall Street economists. The gain in May consumer credit was revised down to a $16.7 billion increase from the initial estimate of $17.1 billion. For the second quarter, consumer credit increased at a 5% annual rate. The gain in June credit came from an increase in non-revolving debt such as auto loans, personal loans and student loans. These loans experienced a $10.2 billion jump in June after a $9.2 billion gain in the prior month. Analysts said that student loans, now captured under the federal government subcomponent, are driving credit higher. Credit-card debt fell by $3.7 billion in the month after a $7.5 billion increase in May. This is the second decline in credit card debt in the past three months.