Washington, DC, August 7, 2006--Consumers took on a much bigger-than-expected $10.3 billion in new debt in June, the Federal Reserve said Monday, almost double what they did in May.
Consumer credit outstanding grew by $10.3 billion in June to $2.186 trillion, the Fed said.
That followed a $5.88 billion increase in May, which was previously estimated as a $4.4 billion gain.
Overall consumer credit grew in June at a seasonally adjusted annual rate of 5.7%. In May, that number grew at an annual rate of 3.25% from a previously estimated 2.45%.
Revolving credit like credit card debt increased at a 9.8% annual rate in June. Revolving credit grew at a revised 11% annual rate in May, up from the previously estimated 10%.
Nonrevolving credit, like auto loans, rose at a 3.2% annual rate in June after falling at a 1.4% annual rate the previous month. In May, nonrevolving credit fell by 1.35%, the Fed said. It was previously estimated to decline by 2%.
The consumer credit figure far outstripped economists' expectations. Economists polled by MarketWatch were expecting consumer credit to rise by $3.4 billion.
