Tags: consumer | credit | debt | fed

Consumer Debt Grows Faster Than Expected

swiping credit card with pos-terminal.
(Embosser/Dreamstime)

Tuesday, 08 January 2019 03:53 PM

U.S. consumer debt rose in November at a faster- than-estimated pace as Americans continued to borrow to finance purchases.

Total credit rose $22.1 billion from the prior month, exceeding the median estimate of economists, following a downwardly revised $25 billion gain in October, Federal Reserve figures showed Tuesday. Non-revolving debt rose the most in a year.

Key Insights

  • The report is generally in-line with other data pointing to robust U.S. consumer spending, buoyed by tax cuts and a solid jobs market that added the most workers in 10 months at year- end. The borrowing likely contributed in the fourth quarter to consumption growing at a healthy but more moderate pace than the prior two periods.
  • Revolving credit outstanding, which includes credit card debt, increased $4.77 billion after a $9.34 billion rise the prior month. The figures show Americans borrowed somewhat more cautiously at the start of the holiday season.
  • Non-revolving debt outstanding climbed $17.4 billion after rising $15.6 billion. Such debt, which includes loans for education and automobiles, may in part reflect industry data showing sales of vehicles remained steady in late 2018.
  • Lending by the federal government, which is mainly for student loans, increased by $4.6 billion before seasonal adjustment
  • Credit expanded at a seasonally adjusted annual rate of 6.7 percent, after 7.6 percent in the prior month
  • The central bank’s consumer credit report doesn’t track debt secured by real estate, such as home equity lines of credit and home mortgages.

© Copyright 2019 Bloomberg News. All rights reserved.

   
1Like our page
2Share
Personal-Finance
U.S. consumer debt rose in November at a faster- than-estimated pace as Americans continued to borrow to finance purchases.
consumer, credit, debt, fed
242
2019-53-08
Tuesday, 08 January 2019 03:53 PM
Newsmax Media, Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
America's News Page
© Newsmax Media, Inc.
All Rights Reserved