Consumer Credit Sees Monster Revisions, Down Overall In July

The Federal Reserve released its figures for outstanding consumer credit yesterday, but I wanted to wait a bit for the noise to die down and figure out exactly what on earth happened.

The Fed made substantial revisions to the data from December 2010 onwards, drastically changing the current figures. Following the revisions, total outstanding credit in July was $2.7052 trillion, down $3.3 billion from June’s reading of $2.7085 trillion.

Revolving credit in July was $850.7 billion, down $4.8 billion from June’s reading of $855.5 billion.

Nonrevolving credit in July was $1,854.5 billion, up $1.6 billion from June’s reading of $1,852.9 billion.

Consumer Credit 650x433 Consumer Credit Sees Monster Revisions, Down Overall In July

Consumer Credit Outstanding 650x246 Consumer Credit Sees Monster Revisions, Down Overall In July

Here you can see just what a drastic revision there was in December of 2010, mostly to nonrevolving credit.

Change in Consumer Credit 650x433 Consumer Credit Sees Monster Revisions, Down Overall In July

Insane revisions aside, July’s consumer credit figures indicate a quiet of month credit card use for shoppers. However shoppers are paying, it was less than usual on plastic.

Nonrevolving credit increased, but only by $1.5 billion, which is substantially below the trend. This is indicative of a slowing in student loans, which can be interpreted as both good and bad.

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