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Consumer credit ticks higher in February

white house and dollar

Consumer credit edged higher in February, increasing at a seasonally adjusted rate of 6-1/2%, the latest report from the Federal Reserve said.

In addition revolving credit decreased at an annual rate of 3-1/2%, while nonrevolving credit grew at an annual rate of 10%.

“Consumer credit rose a sharp $16.5 billion in February but the revolving component, where credit cards are tracked, continues to be very soft, down $2.4 billion in the month,” analysts with Econoday said.

“Strength once again is entirely in the non-revolving component, up $18.9 billion and reflecting demand for car loans as well as the government's acquisition of student loans. The consumer, still hesitant to use credit cards, hasn't been a leading force for the economy,” Econoday added. 

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