US consumer credit growth came in below expectations in August, weighed down by the largest drop in revolving credit in nearly two years.

Data released by the Federal Reserve on Wednesday showed that the consumer credit balance rose by $8.3 billion in August, the smallest increase in three months, after a revised gain of $17.7 billion in July. The median estimate of economists was for an increase of $15 billion. The report excludes home mortgage loans.

Credit card and other revolving credit balances fell by $4.8 billion, the biggest decline since November 2024. Non-revolving credit, which includes auto loans and student loans, increased by $13.1 billion in August. Industry data showed that vehicle sales in August climbed to the fastest pace since last April.

Despite elevated prices, American consumers have continued to spend strongly, providing support for economic growth. However, wage growth has slowed, and the personal savings rate sits at a four-year low. The pressure is most evident among low-income households and consumers who still carry credit card balances.

The Fed's consumer credit report showed that as of August, the average interest rate on credit card accounts requiring interest payments was 22.36%, the highest level in a year. The annual interest rate on 60-month new car loans issued by commercial banks was 7.54%.