US consumer credit rose an unexpectedly large $14.51 billion in June, the biggest increase in eight months, as both credit card use and closed-end lending surged, a Federal Reserve report showed on Friday. The central bank said total consumer debt outstanding grew to a seasonally adjusted $2.146 trillion, reversing direction after a revised $1.23 billion decline in May.
Wall Street analysts polled by Reuters had expected a slimmer $6.75 billion consumer credit rise in June after an originally reported $3.02 billion May decline.
The Fed said non-revolving credit - made up of closed-end loans for cars, boats, education expenses and holidays - rose $6.88 billion in June. Revolving credit, which includes credit and charge cards, rose $7.63 billion.
Employee pricing discounts boosted US car sales and pushed up consumer spending - a key pillar of the US economy - in June while credit card companies recorded buoyant results in the April-June quarter. Earlier on Friday, the parent company of credit card association MasterCard International said its second-quarter profit rose 83 percent as a result of greater credit card use.
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