Big Gain in August Consumer Credit Report
Oct 5th 2012 3:09PM
Updated Oct 8th 2012 6:35AM
Consumer Credit posted a gain for the month of August according to a Federal Reserve report. Not only that, this $18.1 billion gain was the biggest jump in three months. Today's report is not likely to be a major market moving report but it is more support that the public is hanging in there for the economy.
The report showed an expansion in credit to $2.726 trillion, making the gain come in at a seasonally adjusted 8.03% in the month. Dow Jones was looking for a gain of $7.3 billion and Bloomberg was calling for a gain of $7.8 billion for the month.
Today's big gain was in non-revolving credit which includes auto loans and student loans. Revolving credit, which includes credit cards, rose by 5.9% or $4.2 billion to $854.9 billion.
If you trust the 7.8% released for unemployment this morning then chances are higher that the next month will have shown a gain as well in credit after mixed reports from retail and auto sales in September.
JON C. OGG