US Consumer Credit Storms Above $4 Trillion, As Credit Card Debt Hits New All Time High

After a few months of wild swings in mid 2018, in February US consumer credit continued to normalize, rising by $15.2 billion, slightly below the $17 billion expected, following January's $17.7 billion increase. The continued increase in borrowings saw total credit storm above $4 trillion, and hit a new all time high of $4.045 trillion on the back of a America's ongoing love affair with auto and student loans, and of course credit cards. That said, as shown in the chart below, there has been a decisive slowdown in total monthly consumer credit creation, which has shrunk notably from $26 billion last July to just over $15 billion in February.

Revolving credit increased by $3.0 billion, an increase from January's $2.6 billion, rising to $1.061 trillion, a new all time high in total credit card debt outstanding.

There was a small decline in the monthly increase in non-revolving credit, i.e. student and auto loans, which jumped by $12.2 billion, down from the $15.1 billion increase in January, and bringing the nonrevolving total also to a new all time high of $2.984 trillion.

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