Consumer Credit

Who: Federal Reserve

When: 15th business day of the month for two months prior

What: Consumer credit measures the level of outstanding consumer installment debt. The main categories of consumer credit are: auto loans (33%), revolving credit (42%) and other. Loans backed by real estate are not included. Consumer credit can be used to determine if the growth in retail sales is being fueled from cash or credit.

Why: A change in consumer credit indicates the state of consumer's finances and could suggest changes in future spending patterns. An increase in credit is usually a result of rising consumer demand. There are several other indicators that more accurately predict consumer demand and are used more often. Consumer credit does not distinguish between new and existing credit.