U.S. consumer credit grew during May, but the Federal Reserve noted the debt has also increased.

According to the Federal Reserve, the total consumer credit increased by $19.6 billion during May. Consumer credit declined compared to April's $26.1 billion gain. The latest consumer credit data brought the total credit spending to $3.19 trillion. According to Bloomberg and Reuters, analysts had projected an increase of $20 billion in May.

As a result of the increased consumer credit, consumer debt also saw growth in May by a 7.4 percent annual rate.

The Federal Reserve revealed "nonrevolving" credit helped May's increase. The nonrevolving lending expenditures include loans for boats, motor vehicles, mobile homes and trailers, education and vacations. The nonrevolving credit grew by 9.3 percent from April to May, or $17.8 billion of the total May consumer credit. The $17.8 billion increase is the biggest gain since February 2013.

Revolving credit, which includes credit card spending, increased by $1.79 billion in May, down considerably from the $8.85 billion during April. MarketWatch noted the credit card usage in April was the highest annual rate increase since November 2001.

Although the latest Federal Reserve data does not include home sales, it did follow the trend of growing consumer confidence and the housing market. The Consumer Board stated consumer confidence was at 85.2 percent in June, the highest rate in six years and surpassing initial projections of 83.5 percent.

The U.S. Department of Housing and Urban Development also announced sales of new single-family houses increased by 18.6 percent in May, also the highest annual level in six years. New homes were sold at an annual rate of 504,000 last month, which is a sharp increase since May 2008. It was also the biggest one-month gain since January 1992.

"This says a lot about the confidence of consumers and bodes well in terms of future spending," said Bank of Tokyo-Mitsubishi UFJ Ltd.'s Chief Financial Economist Chris Rupkey, via Bloomberg. "Their ability to take on more debt because of the firmer job market means this economy has some staying power."

The job market has reportedly improved as the Department of Labor revealed the national unemployment rate dipped from 6.3 percent to 6.1 percent in June, the lowest percentage rate since September 2008. The Department of Labor reported 288,000 jobs were added last month. The Department of Labor also revealed more than 4.6 million job openings were available during May, an increase from 4.5 million during April.

__

For the latest updates, follow Latin Post's Michael Oleaga on Twitter: @EditorMikeO or contact via email: m.oleaga@latinpost.com.