U.S. consumer credit growth undershoots expectations in April, but remains fairly stable

U.S. consumer credit growth came in below projections in April. It rose just USD 8.2 billion in the month, the most decelerating pace since mid-2011. However, upward revisions to March countered some of the slowdown.

Non-revolving, as well as the revolving credit growth came in weak in the month. On a year-on-year basis, they are rising at around the same rate. Revolving and nonrevolving credit growth have continued to move in lockstep on a year-on-year basis. This convergence makes sense as student and auto lending cool, while revolving credit plays catch up after an unusually slow recovery, noted Wells Fargo in a research report.

In the past couple of years, total consumer credit growth has decelerated modestly. Credit growth has stayed comparatively even-keeled throughout this growth, especially given the steep drop and fairly modest bounce back that occupied during and after the Great Recession. However, compared to disposable income, consumer credit continues to be elevated, added Wells Fargo.