The latest consumer credit data from the federal reserve, including provisional data for August 2016 shows rise to a seasonally adjusted annual rate of 8-1/2 percent. Revolving credit increased at an annual rate of 7 percent, while nonrevolving credit increased at an annual rate of 9 percent.
The data set covers most credit extended to individuals, excluding loans secured by real estate. The percent changes are adjusted to exclude the effect of such breaks. In addition, percent changes are at a simple annual rate and are calculated from unrounded data.
Nonrevolving includes motor vehicle loans and all other loans not included in revolving credit, such as loans for mobile homes, education, boats, trailers, or vacations. These loans may be secured or unsecured.
Here is the longer term trend. Shaded area is the great recession. We see similar growth rates over the past couple of years, highlighting credit growth higher than inflation or income. Further evidence of the growing household debt.
