Americans piled on $40.1 billion worth of debt in June, the Federal Reserve said Friday afternoon. The figure was considerably higher than economists’ forecasts, after May’s revised total of $23.8 billion.
Americans’ borrowing grew by 10.5% in June, compared to 6.3% in May, according to the Fed’s G.19 consumer credit report. Revolving debt — roughly a proxy for outstanding credit card balances — rose by 16% after a 7.8% increase in May.
Non-revolving debt, which includes loans like car loans and student loans, grew by 8.8% after a 5.8% increase in May. These figures exclude mortgage balances, which represent most of the debt carried by households.
On a quarter-to-quarter basis, Americans borrowed an additional $98.9 billion, the Fed said. Friday’s report comes on the heels of a separate release from the New York Fed that reported Americans’ non-housing-related debt ballooned by $103 billion in the second quarter, the largest increase since 2016.
The jump comes as inflation remains at a four-decade high. Last month, the Bureau of Labor Statistics reported that inflation soared to an annualized 9.1% in June, with increases on food, gas and a broad-based rise in nearly all categories triggered by a combination of sky-high energy costs and supply issues.