US consumer borrowing rises more than expected in July

US consumer borrowing increased more than expected in July, driven by a sharp rise in non-revolving credit, according to Federal Reserve data released on Tuesday.

Total consumer credit outstanding rose by $18.1 billion in July after increasing by a revised $14.6 billion in June. Market estimates had projected an increase of $11.3 billion.

The overall level of consumer credit reached approximately $5.19 trillion.

On an annualized basis, consumer credit expanded by 4.2% in July, accelerating from 3.4% in June.

Non-revolving credit, which includes loans for motor vehicles, education and other purposes, increased by $15.3 billion, marking its largest monthly advance in three years. It grew at an annual rate of 4.8%, up from 2.5% in June.

Revolving credit, which includes credit cards, rose by $2.8 billion during the month and recorded an annualized growth rate of 2.5%, slowing from 6% in June.

Outstanding revolving credit reached nearly $1.36 trillion, while non-revolving credit totaled approximately $3.83 trillion.

The Fed’s consumer-credit report covers most borrowing extended to individuals but excludes mortgages and other loans secured by real estate.