Consumer Borrowing Increases by Most in Nearly a Year
U.S. consumer credit outstanding rose in October by the most since November 2016 on larger credit-card balances, Federal Reserve data showed Dec. 7.
Highlights of Consumer Credit For October
• Total credit rose $20.5 billion (estimated $17 billion) or at a 6.5% annualized rate after a downwardly revised $19.2 billion gain.
• Non-revolving debt outstanding climbed $12.2 billion.
• Revolving credit outstanding increased $8.3b, also the biggest gain since November 2016.
Key Takeaways
The 9.9% annualized increase in revolving debt, which includes credit cards, shows Americans carried bigger balances heading into the holiday-shopping season.
While incomes are rising and home and stock values have boosted household net worth to a record, consumers with fewer assets may find it difficult to boost their spending as their debt burdens mount.
Other Details
•ÌýLending by the federal government, which is mainly for student loans, increased by $5.1 billion in October, before seasonal adjustment.
•ÌýFed’s consumer credit report doesn’t track debt secured by real estate, such as home equity lines of credit and home mortgages.
