After a near record drop in non-revolving (student and car) loans in December, many were wondering if this pipeline which has kept the US auto sector afloat would remain shut. We are happy to report that for two consecutive months, this all important funding pathway has now been unclogged and nonrevolving loans are back to their soaring self.
As the chart below shows, in the latest, just released month of February, total consumer credit jumped by $17.2 BN, beating expectations of $14.9 BN, and up from January’s upward revised $14.9 BN (was $10.5 BN). This was driven by a $2.9BN increase in revolving debt, and a $14.3BN jump in nonrevolving student and car loans.
The breakdown – revolving debt:
And non-revolving:
As usual, the two primary uses of credit remained the same, as shown on the chart below:
Finally, in case there is any doubt, here is the primary source of credit: the US government.
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