G17: G.17 Data for January 2025 are now available
The Federal Reserve Board on Tuesday released data on consumer credit for January 2025.
Total consumer credit increased by $15.3 billion, or at a seasonally adjusted annual rate of 4.8 percent. Revolving credit increased by $11.2 billion, or at a seasonally adjusted annual rate of 10.6 percent, while nonrevolving credit increased by $4.1 billion, or at a seasonally adjusted annual rate of 2.5 percent.
The G.17 statistical release is available on the Board’s website at www.federalreserve.gov/releases/g17/.
Consumer Credit Trends
Total consumer credit has been on a steady upward trend since the end of the Great Recession in 2009. The growth rate has fluctuated over time, but it has generally been in the range of 3% to 5%.
Revolving credit, which includes credit card debt, has been growing faster than nonrevolving credit. This is likely due to the increasing popularity of credit cards as a payment method.
Nonrevolving credit, which includes auto loans and student loans, has also been growing, but at a slower pace than revolving credit. This is likely due to the fact that auto loans and student loans are typically used for large purchases that are not made on a regular basis.
Implications for the Economy
The growth of consumer credit is a positive sign for the economy. It indicates that consumers are confident in the future and are willing to spend money. This spending helps to boost economic growth.
However, the growth of consumer credit can also be a concern if it becomes excessive. If consumers borrow too much money, they may eventually default on their loans. This can lead to a financial crisis.
The Federal Reserve monitors the growth of consumer credit closely. The Fed can raise interest rates to slow down the growth of credit if it becomes excessive.
Conclusion
The growth of consumer credit is a positive sign for the economy. However, the Fed will continue to monitor the growth of credit closely to ensure that it does not become excessive.
G17: G.17 Data for January 2025 are now available
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