Consumer Credit Jumps Higher in June
The Federal Reserve Board released its monthly report on US consumer credit Friday, reporting a 7.7%, or $15.5 billion growth in the month of June. The growth adds to the seasonally adjusted annual rate of borrowing, which now totals $2.45 trillion. Revolving credit (credit cards) grew 7.9%, or $5.21 billion, while nonrevolving credit (car loans, student loans) grew 7.6%, or $10.32 billion. Interest rates on new car loans via commercial banks were at their lowest level in the past five years, while the interest on personal loans rose to its highest point since 2008.
The news should be well received by major credit card companies (NYSE:XLF) such as Visa (NYSE:V), MasterCard (NYSE:MA), American Express (NYSE:AXP), as well as financial institutions like Citigroup (NYSE:C) and JP Morgan (NYSE:JPM).