The Federal Reserve said yesterday that total consumer credit rose $19.5 billion in January, up from a slight $919 million gain in the prior month, MarketWatch.com reported. That translates into a gain at a 4.7% annual rate, up from an 0.2% rise in December. The increase was almost double expectations. Revolving credit, like credit cards, accelerated at a 7.7% rate after a 2.4% gain in December. Non-revolving credit, typically auto and student loans, rose 3.6% after a 0.6% drop in the prior month. That category of credit is typically much less volatile. The Fed's data does not include mortgage loans, which is the largest category of household debt.
