Credit Card Use Rebounds as U.S. Loan Balances Rise by $14B

U.S. consumer credit, not including real estate loans, increased more than expected in October, driven by a rebound in credit card use.
It marked the third consecutive month of increased consumer borrowing, a good economic harbinger for the holiday shopping season and overall consumer spending.
The Federal Reserve said today that both revolving and non-revolving credit jumped $14.2 billion in October after rising by an upwardly revised $12.2 billion in September.
Economists had projected an increase of $10 billion.
Revolving credit, which includes credit cards, saw an increase of $3.38 billion after falling $2.19 billion the prior month.
Non-revolving credit, which covers auto loans and student loans made by the government, surged $10.78 billion.
The Fed’s consumer credit report does not include loans backed by real estate.

Leave a Reply

Your email address will not be published.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