US consumer credit rose more than expected in July, posting its biggest increase since November 2001. Total consumer credit increased $26.01 billion to $3.24 trillion in July, the Federal Reserve said on Monday. June's consumer credit figure was revised up to show an $18.81 billion increase. Economists polled by Reuters had expected consumer credit to increase $17.35 billion in June.
The previous record was an increase of around $28 billion recorded in November 2001, according to a Fed spokesman. That occurred shortly after the September 11, 2001 attacks when big automakers were offering zero-percent financing and other incentives to lure consumers back to their showrooms. Revolving credit, which mostly measures credit-card use, increased $5.34 billion to $880.5 billion, after an upwardly revised $1.81 billion increase in June. Non-revolving credit, which includes auto loans as well as student loans made by the government, increased $20.65 billion in July to $2.36 trillion after an upwardly revised $16.99 billion increase in June.
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