This report measures consumer credit that is outstanding. Since one of American consumers favourite past times is to "Charge" goods and services to their credit cards the overall changes in consumer credit can indicate the condition of individual consumer finances. Economic activity is stimulated when consumers borrow within their means to buy cars and other major purchases. On the other hand, if consumers pile up too much debt relative to their income levels, they may have to stop spending on new goods and services just to pay off old debts. That could put a big dent in future economic growth.

The demand for credit can also have a direct effect on interest rates. If the demand to borrow money exceeds the supply of willing lenders, interest rates rise. If credit demand falls and many willing lenders are fighting for customers, they may offer lower interest rates to attract business.