November 26, 2025 at 19:03
U.S. Consumer Credit – G.19 September 2025
Authored by MyEyze Finance Desk
The Federal Reserve's G.19 report for September 2025 shows a rebound in consumer credit growth, with total outstanding reaching $5,076.6 billion and flows at an annual rate of $157.1 billion. Revolving credit increased modestly after August's contraction, while nonrevolving credit continued steady expansion. This suggests stabilizing household borrowing amid economic resilience. Key figures include a 3.1% annual rate for total credit, 1.5% for revolving, and 3.7% for nonrevolving. Overall, the data points to cautious optimism for consumer spending heading into the holidays.
Key Points
- Total consumer credit outstanding reached 5,076.6 billion dollars, with a total flow at an annual rate of 157.1 billion dollars.
- Revolving credit outstanding stood at 1,306.9 billion dollars, showing a revolving flow at an annual rate of 19.8 billion dollars and a percent change at an annual rate of 1.5.
- Nonrevolving credit outstanding was 3,769.7 billion dollars, with a nonrevolving flow at an annual rate of 137.3 billion dollars and a percent change at an annual rate of 3.7.
- The total percent change at an annual rate was 3.1 for the month.
- The upturn in revolving credit after August's contraction suggests households are easing into more flexible borrowing, potentially signaling confidence for seasonal outlays.
Borrowing Resumes at a Sustainable Pace
The September data show that the brief August dip in consumer credit has fully reversed. Growth is now balanced across both revolving and nonrevolving categories, with the annualized pace returning to the 3–4% corridor that has characterized the post-pandemic “higher-for-longer” environment. The decisive swing back into positive revolving territory is the most market-relevant detail: it demonstrates that households are once again willing to tap flexible credit lines ahead of the holiday season, rather than tightening belts or relying solely on fixed-payment loans. This pattern is consistent with stable delinquency trends and supports the broader soft-landing narrative without raising red flags about runaway leverage.
Recent Trends
What This Means for Consumer Health & the Economy
Market Implications
The September rebound in consumer credit — total flow of $157.1 billion annualized and revolving credit turning positive at +1.5% after August’s sharp -5.6% — tells markets that U.S. households are still willing and able to borrow to maintain spending momentum heading into the holiday season. This is a clear soft-landing signal: consumers are not deleveraging aggressively (which would foreshadow recession), nor are they borrowing at the frantic pace seen in 2021-2022 (which would raise overheating concerns). Instead, the 3.1% annualized total growth rate sits comfortably inside the 2–4% corridor that has historically accompanied stable real consumption growth without triggering inflation or delinquency spikes.
For fixed-income and equity markets, the message is modestly constructive. The modest revolving uptick eases fears of an imminent consumer pullback that had surfaced after the August contraction, supporting risk assets and narrowing credit spreads. At the same time, the continued dominance of nonrevolving growth (3.7% annualized) keeps overall leverage in check and reduces the odds of a rapid rise in credit-card delinquencies even if the Fed holds rates higher for longer. In short, the September G.19 data reinforces the current market narrative of resilient growth with contained financial-stability risks — exactly the environment that has allowed the S&P 500 to remain near record highs and 10-year Treasury yields to stabilize in the low-4% area through late 2025.
Implications for Holiday Spending & 2026 Outlook
Source
Disclaimer
This content was created with formatting and assistance from AI-powered generative tools. While we strive for accuracy, this content may contain errors or omissions and should be independently verified.The final editorial review and oversight were conducted by humans.