Consumer credit outstanding continues to increase, but the year-over-year rate of growth has slowed, reports Michael Neal from the National Association of Home Builders' (NAHB) Eye on Housing.

Consumer credit outstanding grew by a seasonally adjusted annual rate of 3.6%, $126.5 billion, in the month of January 2016, 3.7 percentage points slower than the 7.3% rate of growth recorded in December 2015. Consumer credit outstanding now totals $3.544 trillion.

Neal, citing data from the Federal Reserve Board’s Consumer Credit Report, says an expansion in the outstanding amount of non-revolving consumer credit drove the increase.

Non-revolving consumer credit includes student loans and auto loans. According to the report, non-revolving credit outstanding rose by a seasonally adjusted annual rate of 5.4%, $139.1 billion, in January, 2.0 percentage points slower than its rate in December, 7.4%. There is now $2.608 trillion in outstanding non-revolving credit.

However, the expansion in non-revolving credit outstanding was partly offset by a contraction in revolving credit outstanding. Revolving credit outstanding, which is largely composed of credit card debt, fell by 1.3%, $12.6 billion, over the month of January. In December, the outstanding amount of revolving credit grew by 7.0%. There is now $935.3 billion in outstanding revolving credit.

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