Total credit outstanding increased by $25.5 billion in July, the largest jump since November 2022, driven by rises in non-revolving debt and credit card balances.
The increase in borrowing resulted in the biggest retail sales boost since early 2023, particularly benefiting purchases of motor vehicles.
Despite the overall consumer debt delinquency rate holding steady, the share of auto and credit card loans becoming newly delinquent has been steadily rising.
In the second quarter, at least 30 days delinquency on auto loans reached its highest level since 2010, while newly delinquent credit card debt rose to 9.05%, a twelve-year high.
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