Consumer Credit Increases by $14.1 Billion in November
Consumer borrowing in the U.S. increased in November as an improving economy emboldened Americans to take out school and auto loans.
The $14.1 increase in total credit followed a revised $16 billion gain in October, Federal Reserve figures showed today in Washington. Non-revolving lending accounted for all the gain.
Low gasoline prices and an accelerated pace of hiring have galvanized the American consumer to spend more. Household buying, which accounts for almost 70% of the economy, climbed at a 3.2% annualized pace in the third quarter, Commerce Department data showed last month, as people splurged on new cars, appliances, televisions and clothing.
The median forecast of 36 economists called for a $15 billion advance in borrowing in November. Estimates ranged from increases of $10 billion to $20 billion. The report doesn’t track mortgages, home-equity lines of credit, or other real estate-backed debt.
Revolving debt, including credit-card balances, fell by $946 million, the first drop in three months and following a $1.48 billion advance in October, today’s figures showed.
Non-revolving credit, which includes car and education loans, gained $15 billion in November after advancing $14.5 billion in the previous month. Autos sold at a seasonally adjusted 17.1 million for the month, up from 16.4 million in October, according to data from Ward’s Automotive Group.
Federal lending to consumers, which mostly entails school tuitions, increased by $5.8 billion before seasonal adjustments, after rising $5.1 billion in October, today’s report showed.
