I prefer to go straight to the source.
In May, consumers went on a credit spree. Total credit rose 7.5%, nonrevolving credit 6.2%, and and revolving credit rose a whopping 11.2%.
In April, total credit rose 3.2%, nonrevolving credit 1.0%, and revolving credit 4.0%.
The surge in consumer credit early in the quarter explains the strong second-quarter GDP.
Revolving credit, primarily credit cards, now totals $1.038 trillion. Nonrevolving credit such as mortgages, auto loans, and student loans totals a whopping $2.868 trillion.
Party on dudes.
Mike "Mish" Shedlock