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Consumer Credit Unexpectedly Weak, Especially Revolving Credit Card Debt

Consumer credit rose by $14.4 billion in August but economists expected $18.1 billion.
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Consumer Credit in Billions of Dollars Detail 2021-08

In the above chart, nonrevolving government is not seasonally adjusted, the rest of the numbers are. 

The Federal Reserve Consumer Credit Report for August shows seasonally-adjusted  rise in credit of $14.4 billion. 

Seasonally Adjusted Consumer Credit Details

  • Total Credit: +14.4 Billion
  • Revolving Credit: +3.0 Billion
  • Nonrevolving Credit: +11.4 Billion

Not Adjusted Consumer Credit Details

  • Total Credit: +40.7 Billion
  • Revolving Credit: +9.5 Billion
  • Nonrevolving Credit: +31.1 Billion
  • Nonrevolving Government: +14.5 Billion

Nonrevolving government credit is a subset of nonrevolving. It includes student debt. Nearly half of the rise in nonrevolving credit was student debt.

Back-to-School spending accounts for the big difference between the seasonally adjusted numbers and the not adjusted numbers.

Credit Cards Shunned

Consumer Credit in Billions of Dollars Detail 2021-08 Detail

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Consumers continue to shun credit card debt. Revolving debt is below the pre- pandemic level of $1.098 trillion. 

And it's still below the housing bubble peak of $1.020 trillion in May of 2008.

Expectations

The Bloomberg Econoday consensus was $18.1 billion in a range of $16.0 billion to $15.0 billion. 

Economists missed the mark badly.

This is more strong evidence of a weakening economy.

Also consider Another Month of Weaker Than Expected Job Gains in September

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