U.S. consumer credit growth slowed in August as revolving balances declined, according to a Federal Reserve report released October 7.
Total consumer credit increased at a seasonally adjusted annual rate of 1.9%, down from a revised 4.1% pace in July. Revolving credit—which includes credit-card balances—contracted at a 4.2% annual rate, while nonrevolving credit such as auto and student loans grew at a 4.1% pace.
What the latest figures show
Seasonally adjusted consumer credit outstanding rose to about $5.197 trillion in August from a revised $5.189 trillion in July. Revolving credit fell to roughly $1.352 trillion from $1.357 trillion, while nonrevolving credit increased to about $3.844 trillion from $3.831 trillion.
The Federal Reserve expressed the changes as annualized rates. A 4.2% annual-rate contraction in revolving credit does not mean card balances fell 4.2% during August; it translates the one-month movement into the pace that would result if it continued for a full year.
Why revolving credit matters
Revolving credit is watched as one measure of household willingness or need to carry card balances. A monthly decline can reflect repayment, weaker spending, tighter lending or a combination of those factors. The G.19 report does not identify which explanation drove August’s change, so the data alone cannot establish that households broadly became healthier or more financially stressed.
Nonrevolving credit continued to expand, offsetting the card-balance decline and keeping total consumer credit positive. The report covers most consumer loans but excludes debt secured by real estate, such as mortgages and home-equity loans.
Revisions and limitations
July’s figures were revised, and August values are preliminary. Future releases can change the recent history as lenders submit additional information and the Federal Reserve updates seasonal adjustments.
The report also measures outstanding credit, not delinquency or household income. Readers assessing their own finances should compare borrowing costs, minimum payments and repayment time rather than treat a national aggregate as a signal to take on or reduce debt.
Sources
- Federal Reserve Consumer Credit G.19, released Oct. 7, 2026 — August growth rates and outstanding balances.
- Federal Reserve Bank of St. Louis consumer-credit data — historical series and definitions.
See AskNovus Personal Finance for consumer-credit coverage and the latest Federal Reserve policy report for the interest-rate backdrop.
Featured image: Avery Evans/Unsplash.