Timothy Gill, Chief Economist of the American Financial Services Association (AFSA), said in his newsletter that while the Federal Reserve's April G.19 report indicated a monthly rise in non-housing consumer credit, overall balances remain below levels from the previous year.
"The Fed's latest G.19 report showed non-housing consumer credit balances increased in April on a monthly basis," said Gill, Vice President, Research & Chief Economist. "Still, declines in prior months have left outstanding credit below year‑ago levels for five months running."
The Federal Reserve's April 2025 G.19 Consumer Credit report revealed that total consumer credit increased at a seasonally adjusted annual rate (SAAR) of 4.3 percent, marking a rebound from prior month declines. Specifically, revolving credit, such as credit cards, rose at a 7 percent annual rate, while non-revolving credit—which includes auto, student, and other loans excluding mortgages—grew at a 3.3 percent SAAR in April 2025. This upswing followed several months of weak credit growth, reflecting a dynamic borrowing environment.
Despite April’s monthly increase, overall non-housing consumer credit levels remained below those of a year earlier, extending a five-month streak. According to Federal Reserve Economic Data (FRED), non-revolving credit for the first quarter of 2025 stood at approximately $3.68 trillion, marginally up from late 2024 but not enough to surpass year-ago levels. This trend suggests cautious consumer borrowing behavior and potentially tighter lending standards over the preceding year.
The New York Fed’s May 2025 Survey of Consumer Expectations reported that only 9.7 percent of respondents found it easier to obtain credit than a year earlier—a decline from 9.9 percent in April and 10.1 percent in May 2024. This decline reflects a continuing erosion in household sentiment regarding credit access despite economic indicators showing some signs of resilience. The Fed highlighted these figures as indicative of broader consumer wariness about the lending climate.
Sentiment on credit access has been steadily deteriorating over the past year, with the May 2025 share of 9.7 percent marking the lowest recorded in the Survey of Consumer Expectations’ history. This steady decline—from 10.1 percent in May 2024 to 9.9 percent in April and now 9.7 percent—signals that consumers increasingly perceive credit as harder to obtain. These numbers have been a central part of the New York Fed’s research on consumer behavior and lending conditions.
Gill is Vice President of Research and Chief Economist at AFSA with over 25 years of experience in economic analysis across major trade associations. He holds a Certified Business Economist credential and advanced degrees in economics from Miami University and John Carroll University.