Business

US consumer borrowing posts largest gain in 20 years

Revolving credit also marks highest increase since 1998

US consumer credit increased 11% at an annual rate in November, posting the largest monthly gain in 20 years, according to the Federal Reserve data released late Friday.

Consumer credit, which is closely correlated with consumer spending and confidence, rose by $39.9 billion to reach $4.4 trillion in November.

While the market expectation was a $19.5 billion increase, the gain in October was revised to $16.1 billion, from $16.9 billion.

Revolving credit that includes credit cards jumped 23.4% in November the highest rate since 1998.

Nonrevolving credit, which include auto and student loans, increased 7.2% last month, the data showed.

Source
AA

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button