Consumer credit rises less than expected in April

Consumer credit balances in April rose by $13.4 billion at a 4.5% annualized rate according to the Federal Reserve’s monthly report.

Economists had estimated that credit balances rose by $18 billion, according to Bloomberg.

Outstanding revolving credit, which includes credit-card purchases, rose at a 2% annual rate to $951.5 billion.

Non-revolving credit — which close once all payments have been made — rose at a 5.4% annual rate to $2.65 trillion.

Student-loan lending by the government continued to swell. Nonrevolving lending to consumers, which consists mostly of student loans, climbed to $989.6 billion on a not seasonally adjusted basis.

The gain in credit balances in March was revised lower to $28.38 billion. At $29.67 billion prior, it was the most since November 2001.

NOW WATCH: James Altucher makes an argument for not paying back your credit card debt

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.