Americans are swiping their credit cards like it’s 2022 again. Consumer borrowing jumped $20.7 billion in April, following a revised $22.2 billion increase in March, making this the largest consecutive monthly gain in consumer credit since late 2022.
The Federal Reserve published the numbers on June 5, and they paint a picture of a consumer base that is either feeling confident or getting stretched thin. Possibly both.
The numbers behind the borrowing binge
Total consumer credit outstanding hit approximately $5.15 trillion by the end of April. On a seasonally adjusted annual basis, consumer credit grew at a 4.8% rate during the month.
Revolving credit, which is primarily credit cards, surged at an annual rate of 10.4% in April.
