Consumer debt rebounded at an annual rate of 3.6% in September after a surprising 4.7% drop in August, the Federal Reserve reported Monday.
The total of all consumer credit outstanding increased by $7.39 billion to $2.45 trillion in September, exceeding the forecast of $5.15 billion. The surge is largely a result of gains in non-revolving credit, including student loans - a possible indication that more people are returning to school as unemployment lingers. The non-revolving category increased at an annual rate of 5.8%.
Revolving credit, which includes credit card debt, declined slightly, falling by $627 million to $789.62 billion, according to the Fed report.
Despite a weak economy and concerns about household finances, big credit card issuers have been reporting strong earnings. MasterCard Inc. last week reported that third-quarter profit jumped 38.4% as transactions made with credit and debit cards increased.
Consumer spending grew 2.4% in July through September compared with the previous quarter, helping push overall growth in the economy, a report released late last month showed.
