The US Federal Reserve reported on Friday afternoon that Americans hoarded $40.1 billion in June. The figure was well ahead of economists’ forecasts of a $23.8 billion revision in May.
According to the Fed’s G.19 consumer credit report, American borrowing rose 10.5% in June, up from 6.3% in May. Revolving debt, which roughly reflects outstanding credit card balances, rose 16% after rising 7.8% in May.
Non-revolving debt, which includes loans such as car loans and student loans, rose 8.8%, up from a 5.8% increase in May. These figures do not include mortgage balances, which make up the bulk of household debt.
Every quarter, Americans borrowed an additional 98.9 billion. US dollars, the Fed said. Friday’s report follows a separate announcement from the New York Fed Americans’ non-housing debt rose by $103 billion in the second quarter – the highest growth since 2016.
The jump comes as inflation remains at a four-decade high. Last month, the Bureau of Labor Statistics reported that annual inflation rose to 9.1% in June, with food, gas and broad-based growth in almost every category driven by a combination of extremely high energy costs and supply problems.