U.S. Consumer Credit Surges for Second Straight Month, Hits Highest Since Late 2022

U.S. consumer credit continued its strong growth in April, rising by $20.7 billion, following a revised increase of $22.2 billion in March—the largest two-month gain since late 2022. Non-revolving credit, which includes auto and student loans, rose by $9.1 billion, while revolving credit balances—such as those on credit cards—increased by $11.6 billion. The figures exclude mortgages. Meanwhile, rising gasoline prices intensified financial pressure on households. Although the labor market remained resilient, wage growth slowed, prompting some consumers to take on more debt or draw down savings to maintain spending. As of February, the average interest rate on credit card accounts accruing interest stood at 21.5%, with little relief expected in the near term, as the Federal Reserve is projected to raise rates further by year-end to combat resurgent inflation.