Wednesday, January 8, 2014

Consumer Credit Grew $12.3 Billion in November

Consumer credit expanded by $12.3 billion in November, below the average gains the last three months and below expectations. September’s gains were mostly driven by non-revolving credit. Consumer credit is 4.8% above year ago levels.

Revolving credit grew by $0.5 billion, signaling consumers’ continual hesitancy to take on debt. However, the positive two month trend is optimistic for December and 2014.

Non-revolving credit continues to grow, adding $11.9 billion in November, consisting mainly of student debt. Non-revolving credit is 4.8% above year ago levels. However, the pace of non-revolving credit is on a downward trend, and may start to slow in the coming months as the economy picks up.

Read the Federal Reserve release.

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