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Consumer loans are extended in July at the fastest interest rate in almost two years



Bloomberg News / Landov

Vehicles are on display at a Nissan Motor Co. car dealer in Patchogue, New York.

Figures: Consumer loans rose at their fastest rate in nearly two years in July, according to Federal Reserve data released Monday. Total consumer credit increased $ 23.3 billion. This is an annual growth rate of 6.8%, up from a 4.1

% rate last month. That's the fastest pace since November 2017. Economists have been expecting a $ 16 billion gain, according to Econoday.

What Happened: Revolving credit, like credit cards, rose 11.2% in July after falling 0.2% in June. It is also the highest rate of 20 months. Non-revolving credit, usually auto and student loans, rose 5.3% in July. The data does not include mortgage loans.

Big picture: Economists focus all their attention on the consumer's health with business expenses that fluctuate in the face of global weakness and trade tensions. The strong labor market and rising wages have kept spending at a solid pace this year. But talking about the recession can turn into a self-fulfilling prophecy if consumers retire.

Market Response: Dow Jones Industrial Average

DJIA, + 0.13%

was slightly up in afternoon trading as investors await decisions from the central bank over the next 10 days. Both the European Central Bank and the Fed are expected to reveal easier money initiatives.


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