| The growth of consumer spending slowed in June, coming in under projections of economists, according to recent data from the Federal Reserve.
After a strong May that saw 7.5 percent growth at a seasonally adjusted annual rate, consumer credit grew 3.1 percent, mainly due to a slow down in revolving credit, which largely reflects credit card debt.
Revolving credit was down about $1 million overall between May and June. That’s after revolving credit grew $9.5 billion between April and May. Non-revolving credit, which largely includes auto and student loans, grew 4.4 percent at a seasonally adjusted annual rate, or $10.4 billion between May and June.
In the second quarter, consumer credit grew 4.6 percent, compared to 3.3 percent in the first quarter. Lending by depository institutions, credit unions, the federal government, nonprofits and nonfinancial businesses all grew in June, and despite the slow down in revolving debt overall, banks and credit unions grew in that segment as well.
Credit unions saw the biggest growth in non-revolving credit in June, adding $7.1 billion.
