Consumer Credit in U.S. Rises More Than Forecast in October

(Bloomberg) — U.S. consumer debt rose more than forecast in October as Americans carried more credit card debt, suggesting consumer spending remains steady amid the strong job market.

Total credit increased $18.9 billion from the prior month, beating the median estimate of economists, following an upwardly revised $9.6 billion gain in September, Federal Reserve data showed Friday. Revolving debt outstanding and non-revolving credit both climbed.

Key Insights

• The rebound in total credit signals American consumers are on steady footing at the start of the fourth quarter amid a tight labor market, consistent wage gains and improving confidence.
• Labor Department data released earlier Friday showed a strong jobs market is likely to support spending. The nation added 266,000 to nonfarm payrolls in November, topping all forecasts, as wage gains held up and unemployment matched a half-century low.
• Revolving credit outstanding, which includes credit card debt, increased $7.9 billion after a $187 million rise the prior month and a decline in August.
• Non-revolving debt outstanding climbed $11 billion after a $9.4 billion rise. Such debt includes loans for school and cars.

Get More

• Credit expanded at an annual rate of 5.5% in October after growing 2.8% the month prior.
• Economists surveyed by Bloomberg had projected the credit gauge would rise by $16 billion.
• Lending by the federal government, which is mainly for student loans, climbed $3.5 billion before seasonal adjustment.
• The consumer credit report doesn’t track debt secured by real estate, such as home mortgages.

©2019 Bloomberg L.P.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.