Tuesday, February 7, 2012

Consumer Credit Jumped $19.3 Billion in December

Consumer credit rose by a robust $19.3 billion or 9.3% in December. This large growth follows a strong November report, the 2-month jump is the largest since October-November 2001. This increase puts overall credit levels at their highest level since mid-2009.

ABA Chief Economist James Chessen commented, “consumers are feeling more confident, and are willing to take on more debt.”

Non-revolving credit continues to drive the gains, increasing $16.6 billion (12.5%), its largest gain since November 2001. “Strong auto sales and student loan growth have driven the expansion in non-revolving credit,” said James Chessen.

Revolving credit gained $2.8 billion (4.2%), half of last month’s gain, but well above the average for 2011. Commercial bank’s balances constitute nearly 80% of this gain in the not seasonally adjusted data.

Read the release.

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