(Bloomberg) — U.S. consumer credit surged in May by the most on record, reflecting a jump in non-revolving loans that underscores solid household spending.
Total credit climbed $35.3 billion from the prior month after an upwardly revised $20 billion gain in April, Federal Reserve figures showed Thursday. On an annualized basis, borrowing rose 10% in May. Economists in a Bloomberg survey had called for a $18 billion gain.
Non-revolving credit, which includes auto and school loans, increased $26.1 billion, the most on record. Revolving credit, which includes credit cards, rose $9.2 billion after declining in the previous month.
Sales of motor vehicles were robust in both April and May at the same time car prices climbed. The combination has led to increased borrowing. Credit card balances, meanwhile, also rebounded by the most since 2019 as vaccinations and a pickup in social activity spurred spending.
The figures show a greater level of consumer confidence as the economy strengthens along with employment.
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