U.S. consumer credit increases by $27.8 billion in September, the biggest gain in nearly four years
The Federal Reserve said in data released on Friday that U.S. consumer credit increased by $27.8 billion in September, the largest monthly gain in nearly four years. The figure exceeded the expectations of all economists surveyed by Bloomberg. The report excludes residential mortgage loans.
The credit growth was driven by an increase in credit card balances and a rise in nonrevolving credit, including auto loans and student loans. U.S. consumer credit in September grew at an annual rate of 6.4%. The August increase was revised up to about $8.2 billion.
The data come from the Federal Reserve’s G.19 consumer credit report and reflect seasonally adjusted changes in outstanding credit.
Original source:
Title: US Consumer Credit Surges by Most in Nearly Four Years Publisher: Bloomberg Publication date: 2026-11-06 URL: https://www.bloomberg.com/news/articles/2026-11-06/us-consumer-credit-surges-by-most-in-nearly-four-years Source nature: media report (citing Federal Reserve data) Verification status: This read-through cross-checked the Bloomberg report and FRED data, verification date 2026-11-06 Supporting content: supports all core figures in the body, the reasons for the increase, and the report scope
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The Federal Reserve’s G.19 report shows that U.S. consumer credit increased by $27.8 billion in September, the largest monthly gain in nearly four years, exceeding all expectations in Bloomberg’s survey. The increase was driven by higher credit card balances and growth in nonrevolving credit, including auto loans and student loans. The August increase was revised up to about $8.2 billion, and September grew at an annual rate of 6.4%.
From a capital-flow perspective, consumer credit does not include residential mortgage loans and mainly reflects changes in credit card and installment loan balances. In September, both revolving credit related to credit cards and nonrevolving credit rose, bringing total outstanding credit to about $5.22 trillion. The report uses seasonally adjusted data and reflects net borrowing minus repayment for the month.
Compared with increases in prior months, such as about $17.6 billion in July and about $8.2 billion in August, September’s increase expanded significantly. The similarity is that both revolving and nonrevolving credit contributed together; the key difference is that September’s increase far exceeded expectations and was the largest monthly gain in nearly four years, indicating a faster pace of short-term borrowing.
For consumers, a rise in credit balances reflects a net increase in borrowing during the month and may be used for spending or refinancing. For the credit market, simultaneous growth in credit card and auto/student loans expanded total balances. For policy observers, the data exclude mortgages and reflect only short-term changes in non-housing consumer credit; future monthly data will determine whether the trend continues.
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A $27.8 billion increase in September was the largest in four years and exceeded all economists’ expectations.
The growth was driven by credit card balances and nonrevolving credit (auto and student loans).
The report excludes residential mortgage loans and reflects only the net increase in non-housing consumer credit.