Consumer credit rebounds

August 7, 2026

Consumer credit outstanding increased 3.3% in June at an annualized rate. That represents a rebound after a small decline in May of 0.3%. Compared to a year ago, consumer credit rose 2.4%, the seventh month of solid gains.

Revolving debt, made up primarily of credit cards, rose 6% in June after declining 4.7% in May. It grew even more in March at 9.7% and 10.5% in April. May could have reflected both a peak in tax refunds and slower spending on some categories owing to high gas prices. 

Gas prices slipped in June because of the temporary lull in the Middle East. Spending at grocery stores and restaurants continues to be weak. Lower-income consumers are buckling under the weight of higher inflation. Middle- and upper-income consumers are trading down, but that is not making up for the shortfall.

The amount of nonrevolving debt, which includes car loans, student loans and personal loans, increased 2.3% in June after gains of 1.3% in May and 2.6% in April. Vehicle sales ticked up in June on falling insurance costs and flat vehicle prices.

Student loan debt continues to grow. More than seven million borrowers will need to enroll in one of the two new federal repayment plans by the end of September.