A report released by the Federal Reserve on Thursday showed U.S. consumer credit increased by much less than expected in the month of September.
The Fed said consumer credit rose by $9.5 billion in September after jumping by $17.9 billion in August. Economists had expected consumer credit to climb by $15.0 billion.
The smaller than expected increase in consumer credit came as a continued drop in revolving credit partly offset continued growth in non-revolving credit.
Revolving credit, which largely reflects credit card debt, edged down by $1.1 billion in September after slipping by $2.2 billion in August.
Meanwhile, the report said non-revolving credit, such as student loans and car loans, climbed by $10.6 billion in September after surging up by $20.1 billion in the previous month.
The report said total consumer credit was up by 2.8 percent compared to the same month a year ago, as a 4.2 percent jump in non-revolving credit more than offset a 1.2 percent decrease in revolving credit.