U.S. consumers are certainly pulling out their credit cards to pay for goods and services, federal data has shown.
The total outstanding credit card balance rose $11.3 billion to nearly $5.07 trillion in May, beating April's jump by $4.8 billion, according to data released by the Federal Reserve on Monday.
The median forecast in a Bloomberg survey of economists called for an $8.9 billion increase for May, which has not been adjusted for inflation.
Revolving credit, which includes credit cards, spiked $7 billion in May to almost $1.35 trillion, the Fed data revealed. May's increase in credit card debt reversed a $900 million decline in borrowings during the month of April.
Americans are putting more purchases on their credit cards after spending their COVID-19 pandemic savings and facing higher costs of living, Bloomberg reported.
The report also showed that credit card interest rates rose to 22.76% in May, up from 22.63% during the first quarter. The report did not show interest rates for March and April.
Price Action: Credit card issuers gave mixed reactions to Monday's Fed report. Visa Inc.
JP Morgan Chase & Co.
