Washington — Consumer credit increased at an annual rate of 8.3 percent in May up from 4.6 percent in April, a sign of spurred economic growth, according to the Federal Reserve Bank. In line with the uptick in June hiring, consumer confidence is also on the rise, according to the Consumer Confidence Index.
Overall credit rose $19.6 billion in May, above Reuters’ predicted $12.5 billion increase and consumer debt grew at the highest rate since May 2012, the Federal Reserve reports. Revolving credit, including credit card usage, went from $850 billion in April to $856 billion in May.
With a 7.1-point increase in June, the Conference Board’s Consumer Confidence Index saw an uptick for the third consecutive month. Director of Economic Indicators at The Conference Board Lynn Franco says: “Consumer Confidence is now at its highest level since January 2008 (87.3). Consumers are considerably more positive about current business and labor market conditions than they were at the beginning of the year. Expectations have also improved considerably over the past several months, suggesting that the pace of growth is unlikely to slow in the short-term, and may even moderately pick up.”