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

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.