1/11/2017 7:34:00 PM
Credit Card Borrowing Influences Growth in Total Consumer Credit
Consumers’ credit card borrowing increased from October to November, while student loans and auto loans declined.
Credit card borrowing in November contributed to a significant overall increase in consumer credit, according to the Federal Reserve Board’s Consumer Credit Report released this week.
Revolving credit, including credit card borrowing, increased $11 billion in November compared to an increase of $2.4 billion in October, according to the report.
Total borrowing increased $24.6 billion, to $3.75 trillion, compared to an increase of $16.2 billion in October.
Non-revolving credit, including student loans and auto loans, was $2.8 trillion in November, a $13.5 billion increase.
Non-revolving credit was the only form of consumer credit that slowed down from October, when there was an increase of $13.8 billion, according to the Fed.
November also marks the fastest growth rate in consumer borrowing in three months, according to U.S. News and World Report.
“The November increase, which translated into a strong gain of 7.9 percent at an annual rate, was larger than economists had been forecasting,” according to the article. “It came at a critical time for consumer spending in the midst of the holiday shopping period.”
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